Gold Prices Rise Amid US Dollar Softening and Global Market Volatility
Gold prices continued their upward trend last week, reaching near $4,600 an ounce on August 21. This comes as investors assess volatility in global bond markets and renewed tensions in the Middle East.
The US Treasury's decision to double its buybacks of 10- to 30-year government debt to at least $4 billion per operation has weighed on the US dollar, which traded at around $1.27 on August 21, down from about $1.28 at the start of last week.
Chez Anbu, head of wealth advisory at OCBC, said gold remains an important source of portfolio diversification and a potential hedge against geopolitical risks, policy uncertainty, and fiscal concerns.
The Straits Times Index (STI) slipped 0.95% through the week to close at 5,688.96 on August 21, while UOB shares fell 1.15% to $40.53, and OCBC slipped 0.61% to $30.98.
DBS bucked the trend, rising 1.2% to $76, but some analysts attribute this to profit-taking after recent rallies.