Gold Price Decreases against U.S. Dollar; yields ahead of Central Bank Meetings. Spot gold was down 0.2% at $1788.6 per ounce as of 0157 GMT, with U.S. gold futures dropping 0.2% to $1,790.60.
Gold prices were reduced on Wednesday, retreating from the $1800 mark. A strong U.S. dollar and elevated bond yields dented bullion’s safe-haven appeal ahead of key central bank meetings.
Spot Gold was down 0.2% at $1,788.66 per ounce, as of 0157 GMT.
U.S. Gold Futures dropped 0.2% to $1,790.60.
The high-value metal rallied to an over one-month peak last week but took a deep plunge and retreated 1.2% from those levels.
Benchmark 10-year U.S. Treasury yields rose and resulted in increasing non-interest-bearing gold’s opportunity’s cost.
The dollar also steadied close to a one-week high from the previous session. As a result, gold became less appealing for buyers with international currencies.
Bank of Japan (BOJ) and European Central Bank (ECB) meetings will play a key role in deciding the price directions. This meeting is scheduled to be held on Thursday.
The BOJ’s agenda is to maintain its massive stimulus program on Thursday and cut this year’s inflation forecast, indicating that it has no intention to copy other banks looking to exit from crisis-made policies.
Gold, usually considered an inflation hedge, pushes government bonds to yield, resulting in a higher opportunity cost for holding bullion.
The U.S. consumer confidence unexpectedly took a high in October. The concerns and worries about a high inflation rate were rejected by better and enhanced labor market prospects, suggesting economic growth was picking up after an unsettled third quarter.
Data from Hong Kong Census and Statistics Department showed that China’s net gold imports via Hong Kong increased 60% in September to their highest level in five months.
SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said that its holding rose from 0.2% to 979.81 tons on Tuesday from 978.07 tons on Monday.
Spot Silver fell 0.8% o $23.95 per ounce. Platinum devalued 0.7% to $1,020.61 and Palladium edged 0.3% lower to $2,005.51.