This is an older news update for Gold. Click here to view the latest daily update.

Gold higher as the dollar and rates fall

Gold daily update


Gold daily update

Gold prices are higher today as both the US dollar and bond yields edge lower. The US dollar index is slightly lower today, while 10-year US Treasury bonds are currently yielding 2.87%. As an alternative to fiat currency, gold prices tend to rise when real interest rates fall. When real rates are high, investors choose bonds instead precious metals (unlike gold, bonds pay a coupon). When real rates fall, gold becomes relatively more attractive to bonds and appreciates as a result. Given our outlook for moderating inflation (which should result in lower nominal rates), gold prices should remain in a bullish trend. The main risk for gold is a rally in the US dollar - for now, the dollar remains in a bearish trend. Our short-term outlook on gold is neutral, while our medium-term outlook remains bullish. 

After its most recent top around $1,353, gold is now above $1,328.


Subscribe to the MarketsNow Gold daily update