Gold rises as bond yields fall and the dollar’s rise limits gains

Gold prices rose on Thursday as bond yields declined, but the dollar’s rally and expectations that the US Federal Reserve will continue to raise interest rates kept prices near two-week lows.

And gold in the spot contracts rose 0.3 percent to $ 1765.80 an ounce, at 0920 GMT, after a three-day decline that took it to $ 1759.17 on Wednesday, the lowest level since the third of August. And US gold futures rose 0.2 percent to $ 1779.90 an ounce.

The minutes of the Federal Reserve’s meeting on Wednesday showed that US central bank policymakers are committed to raising interest rates to the highest level necessary to curb inflation. However, it did not explicitly hint at the pace of interest rate increases.

The dollar index rose to a three-week high, making gold priced in the US currency less attractive to overseas buyers.

Gold got support from the decline in US Treasury yields for 10 years, which reduced the opportunity cost of acquiring the precious metal, which does not generate a fixed return.

Analysts at (ANZ) said in a note that recession fears are expected to stimulate some inflows of safe-haven gold, and central bank purchases are likely to be strong with weak currencies and higher political risks.

Spot silver fell 0.6 percent to $19.72 an ounce, while platinum rose 0.1 percent to $924.72 and palladium 1.2 percent to $2165.93.