The US dollar fell 0.2 percent, after hitting its highest level in nearly six months, on Tuesday, while US bond yields for 10 years fell from their highest levels in more than a week, as the markets were affected by signs related to raising interest rates.
Federal Reserve (US Central Bank) member Christopher Waller said the latest set of economic data released gives the US central bank room to see if it needs to raise interest rates again.
“The US central bank’s policy-making guidance on a meeting-by-meeting basis has increased the bets for additional tightening (of monetary policy) in November or December,” said Yip Jun Rong, strategist at IG.
He added that the jump in oil prices does not provide much reassurance about global inflation expectations, as it increases investors’ conviction that the decision to raise interest rates in the long term is coming.
According to CME Group’s “Feed Watch” service, markets currently expect 93 percent that the US central bank will hold off on raising interest rates temporarily in September, but about 40 percent expect it to be possible in November or December.
price move
Spot gold rose 0.1% to 1927.59 an ounce by 0603 GMT, after hitting its lowest since August 29 earlier in the session. US gold futures erased their previous losses, to settle at $1952.90.
The spot silver price rose 0.2 percent to $23.56 an ounce, while platinum fell 0.3 percent to $923.79.
Palladium rose 0.4 percent to $1,217.21.
#Gold #rises #weakness #dollar #Treasury #yields