Gold Prices Rise on Weak Dollar Amid Easing Yields
Gold futures rose in India's futures market due to a weak US dollar, as investors turned to bullion for safety. The price of gold per 10 grams increased by Rs 264 to Rs 1.58 lakh, with an overall gain of 0.17% in the futures trade.
The business turnover was 10,450 lots, and analysts cited easing US Treasury yields and a weaker dollar as supporting factors for gold prices. However, inflation concerns, high crude oil prices, and geopolitical tensions continue to limit the upside in bullion.
Comex gold futures traded flat at $4,546 per ounce in New York's international markets. Manav Modi, Commodities Analyst at Motilal Oswal Financial Services Ltd., noted that gold has hovered above $4,500 for the first time since early June due to a sharp decline in US Treasury yields and the dollar.
The US Treasury's decision to double its buyback operations for longer-dated bonds to $4 billion from $2 billion per operation starting September 9 provided liquidity support to the long-end of the market. This sent the 30-year US Treasury yield down from near two-decade highs to around 5.19%.