Gold rises as the dollar and US Treasury yields fall

The price of gold rose from its lowest level in a week on Wednesday, with US Treasury bond yields declining and the dollar abandoning the highest levels reached in the previous session, but expectations of keeping interest rates high limited the gains of bullion.

Spot gold rose 0.1 percent to 1,927.59 per ounce by 0603 GMT, after reaching its lowest levels since August 29 earlier in the session. US gold futures erased their previous losses to settle at $1,952.90.

The US dollar fell 0.2 percent after reaching its highest level in nearly six months on Tuesday, while US 10-year bond yields fell from their highest levels in more than a week, with markets affected by signals related to raising interest rates.

Federal Reserve Board member Christopher Waller said the latest batch of economic data released gives the US central bank room to see if it needs to raise interest rates again.

He added that the jump in oil prices does not provide much reassurance regarding global inflation expectations, and it also increases investors’ conviction that the decision to raise interest rates in the long term is coming.

The price of silver in spot transactions rose 0.2 percent to $23.56 per ounce, while platinum fell 0.3 percent to $923.79.

Palladium rose 0.4 percent to $1,217.21.