Gold Soars as US Dollar and Yields Pull Back

Gold prices rebounded over 1% on Wednesday as the US dollar and Treasury yields retreated from recent highs. The precious metal rose to $4,376.41 an ounce by 01:57 p.m. EDT, recovering from its lowest level since August 7.

The pullback in yields and the dollar allowed gold to bounce off some of its recent lows, according to David Meger, director of metals trading at High Ridge Futures.

US Treasury yields eased after touching multi-year highs earlier in the session, while oil prices also declined. The energy complex and yields remain a major focus for the gold market moving forward, said Meger.

Federal Reserve Bank of New York President John Williams stated that rising long-term bond yields are not driven by inflation fears but rather reflect a solid economy.