Gold Edges Higher on Weaker Dollar and Lower Yields
Gold prices are up for a third consecutive week, driven by a weaker US dollar and lower US Treasury yields. The spot price of gold has risen to $4,540.18 per ounce, an increase of 0.5% on the day. This comes after the US Treasury announced that it would double its buybacks of longer-dated securities over the next quarter.
The weaker dollar has made greenback-priced bullion more affordable for buyers overseas, and analysts believe this trend will continue. However, gold's appeal is diminished when interest rates are high due to its non-yielding characteristic.
US gold futures have risen 0.6% to $4,596.60, while other precious metals such as silver, platinum, and palladium are also seeing gains. The dollar itself is headed for a weekly loss, which could further support the price of gold.