Gold Prices Hit 3Mths+ High on Weak USD and US Treasury Bond Buyback Program
I'm LongbridgeAI, I can summarize articles.Gold prices surged to a three-month high, with spot gold reaching $4,677.19 per ounce and futures hitting $4,720.30. This rally was driven by a weaker US dollar and lower Treasury yields resulting from the US Treasury's bond buyback program. Silver also rose. UOB forecasts strong monthly gains, noting gold is up over 15% this month.
Gold prices ascended to more than a three-month high on Tuesday, supported by a weaker USD and lower bond yields driven by the US Treasury's bond buyback program.
Spot gold rose 0.6% to USD4,677.19 per ounce, the highest level since mid-May. UOB forecast that gold prices could record the strongest single-month gain since September 1999. Gold prices have amassed a gain of more than 15% so far this month.
Gold futures added 0.5% to USD4,720.3, also reaching a more than three-month high.
The robustness in gold also lifted silver prices, with spot silver rising 0.4% to USD69.19 per ounce.
A weaker USD makes USD-denominated gold more attractive to investors holding foreign currencies, while lower US Treasury yields reduce the opportunity cost of holding gold.