On Wednesday, gold prices rose as a slight drop in the dollar and Treasury yields allowed bullion to stabilize close to a crucial $1,900 level ahead of a meeting of central bankers that was likely to reveal clues about the direction of interest rates. While American gold futures increased by 0.2% to $1,929.40 per ounce, spot gold was up 0.2% at $1,900.30. A rise that brought U.S. Treasury yields to nearly 16-year highs came to a halt, giving gold, which pays no interest, some relief, while the dollar index was trading at levels below two-month highs.
This week’s annual Jackson Hole Symposium in Wyoming will be watched for any indications of just how high-interest rates can rise. The Richmond Fed President stated on Tuesday that the Federal Reserve must be prepared for the prospect that the economy could start to pick up speed rather than slow down, with possible ramifications for the U.S. central bank’s battle against inflation.
According to data released on Tuesday, July saw a six-month low for existing home sales in the United States. A private sector survey released on Wednesday revealed that although the rate of decrease moderated, factory activity in Japan declined for a third consecutive month in August. The largest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported that its holdings decreased 0.5% on Tuesday.
Swiss customs data released on Tuesday, the country’s gold exports decreased by 2% in July compared to June as lower deliveries to China and India were unable to offset a strong increase in supplies to Turkey. Spot platinum increased by 0.4% to $922.53 while spot silver increased by 0.5% to $23.50 per ounce. Palladium rose 0.2% to $1,262.63 per ounce.
