Gold Rising From a 7-Month Low as The Dollar’s Weakness Outweighs The High Yields

Gold prices rose, after reaching its lowest level in more than seven months in the previous session, as support from the dollar’s weakness overshadowed the pressure caused by the rise in Treasury yields.

Spot gold rose 0.5% to 1,791.50 dollars an ounce, after touching its lowest level since the second of July at 1759.29 dollars on Friday.

And US gold futures won 0.6% to $ 1787.70.

The dollar hit its lowest level in several years against the pound sterling and competing currencies on Monday, but record US Treasury bond yields reached the highest level in a year, which increases the opportunity cost of owning gold that does not yield a return.

In addition to a $ 1.9 trillion aid package to mitigate the repercussions of Corona in the United States, which is expected to be approved by the end of the week, investors are awaiting testimony by Jerome Powell, Chairman of the Federal Reserve (US Central Bank), in the semi-annual monetary report to Congress, starting tomorrow, Tuesday.

As for the other precious metals, silver gained 0.6% to $27.38 an ounce, while platinum gained 0.2% to $1276.92.

Palladium rose 1% to $2,403.08, after earlier hitting its highest level in more than a month at $2,431.50.