Gold Prices Rebound Amid Dollar Weakness
World gold prices rebounded after a sharp drop of nearly 2% as the US dollar weakened and bond yields cooled down, making gold more attractive. According to the latest data, spot gold prices increased by 0.61%, to $4,361.22/ounce at 3:13 PM Vietnam time. In contrast, December gold futures fell 0.27%, to $4,408.72/ounce.
The sell-off in the bond market slowed down, causing the US dollar to weaken and yields to cool down. This development supported gold's recovery outlook as investors seek non-yielding assets like gold amid concerns about inflation.
The market is currently awaiting the minutes of the Fed's July monetary policy meeting for more signals on interest rate orientation. As expected, the probability of keeping interest rates unchanged stands at 67%, while the possibility of raising rates has decreased after negative US economic data. Lower interest rates often support gold prices by reducing the opportunity cost of holding this non-profit asset.