Gold Rebounds as US Dollar and Yields Pull Back from Highs
Gold prices rebounded by over 1% on Wednesday as the US dollar and Treasury yields pulled back from recent highs. Spot gold rose to $4,376.41 an ounce by 01:57 p.m. EDT (1757 GMT), its highest level since August 7. The metal had hit a near one-month low earlier in the session.
According to David Meger, director of metals trading at High Ridge Futures, the rebound is due to a slight drop in yields. 'One of the reasons that gold has been able to move back above unchanged is we have seen a little tick down in yields for the day and that has allowed gold to bounce off some of the recent lows,' he said.
US Treasury yields eased after touching multi-year highs earlier in the session, while oil prices also fell. The dollar slipped from its near three-week peak. Federal Reserve Bank of New York President John Williams attributed rising long-term bond yields to a solid economy, rather than inflation fears.