Commodities
Dollar Weakness Boosts Gold Prices Amid Easing Bond Yields
Gold prices rebounded on Wednesday, rising by 0.8% to $4,370.02 per ounce as the US dollar weakened and bond yields eased from multi-decade highs.
The decline in the dollar made gold more attractive, as it pays no yield or interest, while lower interest rates also support bullion's appeal.
Nikos Tzabouras, senior market analyst at Tradu.com, noted that the macro backdrop is gradually improving for gold as price pressures ease and the case for a Fed hold strengthens.
The release of the minutes from the Federal Open Market Committee's July meeting later on Wednesday will be closely watched for clues on the Fed's interest rate outlook amid persisting inflation risks.