Gold Prices Rebound Over 1% Amid Weaker Dollar and Lower Yields

Gold prices rebounded on Wednesday after dipping to near one-month lows in the previous session. Spot gold rose 1.1% to $4,376.41 per ounce, while gold futures for December delivery on the New York Mercantile Exchange settled 0.4% higher at $4,414.60 per ounce.

The rebound is attributed to a weaker US Dollar Index, which slipped 0.08%, and lower U.S. Treasury yields. According to David Meger, director of metals trading at High Ridge Futures, Treasury yields edged lower during the session, allowing prices to bounce off recent lows.

Oil prices also softened as investors digested the latest round of economic data. New York Federal Reserve President John Williams stated that the rise in long-term bond yields is not driven by inflation concerns but rather reflects the solid fundamentals of the U.S. economy.

The Dutch central bank recently moved 86 metric tons of gold from New York and Ottawa to London over the past six months to improve trading convenience and strengthen crisis preparedness.