T-Yields Push Gold Higher Nearest $1,900

Gold has ended Wednesday’s US trading session with the highest daily gains in a week. Gold price has edged around $1,867.

Gold got the opportunity to cheer US Treasury yields’ heavy pullback that impacted the US Dollar Index (DXY) amid the absence of major catalysts and ongoing inflation.

Gold is buyers’ favourite as a due reaction to mixed US housing figures and policymakers’ indecision regarding rate hike. Housing figures do allow traders to consolidate recent moves but the ongoing inflation concerns and talks of the monetary policy tightening also do reinforce gold’s safe-haven demand as soon as the USD steps back

US Treasury yields retreated from the highest levels since October 26 to posting heaviest daily fall in a week while ending Wednesday’s US session around 1.59%, down 4.3 basis points (bps).

The dollar Index tracked bond yields and marked a first negative daily closing in three after refreshing the 16-month top during early Wednesday.

US Housing Starts mark a surprise fall in October and the previous readings were also revised down while the Building Permits rose over expectations.

Fed speakers are still trying to push back the inflation concerns to tame the rate hike talks. Though, the policy hawks are not defeated and keep challenging gold buyers.