Gold edge higher following decline in US dollar and Treasury yield

Gulf Today Report

Gold jumped on Wednesday after the US dollar and Treasury yield declined and hope for a large US fiscal stimulus boosted its appeal.

Spot gold rose 0.1% to $1,857.76 per ounce by 05:37 GMT while US gold futures gained 0.8% to $1,859.20.

IG Market analyst Kyle Rodda said, "the big picture is it's still a very constructive year for gold. With real yields remaining rather negative and the dollar continuing its path lower as the year unfolds, gold remains an attractive proposition." 

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Benchmark 10-year Treasury yields declined after recording 10-month highs, it dragged the dollar low. That has made gold cheaper for other currency holders.

US President-elect Joe Biden’s plan for a larger stimulus package also boosted gold.

Gold prices benefit from a loose monetary policy. Among other precious metals, silver dipped 0.4% to $25.48 an ounce, platinum eased 0.1% to $1,074.55, and palladium fell 0.2% to $2,386.72.