Gold prices rose on Tuesday, November 21, supported by a decline in the US dollar and Treasury bond yields, while investors looked to the minutes of the US Federal Reserve’s latest meeting to obtain more evidence regarding interest rate expectations.
Gold rose in instant transactions by 0.6% to $1,988.29 per ounce by 01:33 GMT. US gold futures increased 0.5% to $1,990.10.
Analysts' opinions
“Dollar returns and US bonds continue to decline,” said Edward Mayer, a metals analyst who provides research for Marks. Demand from central banks is also very strong. All of these things motivate gold. The market is reconsidering this decline that we witnessed yesterday.
The dollar fell near its lowest levels in more than two and a half months, as investors expect US interest rates to decline next year. A weaker dollar would make gold less expensive for holders of other currencies.
Bond yields and Fed minutes
US 10-year Treasury bond yields are hovering near their lowest levels in two months, which they touched last week.
The minutes of the US Federal Reserve's last meeting are scheduled to be released at 19:00 GMT. Indicators of slowing inflation in the United States have reinforced expectations that the US Federal Reserve has ended the cycle of raising interest rates.
According to Fedwatch, markets widely expect the US Federal Reserve to leave interest rates unchanged at the December meeting and that there is a more than 50% chance of cutting interest rates by at least 25 basis points by May.
Lower interest rates reduce the opportunity cost of holding gold.
Other precious metals
Regarding other precious metals, silver rose in spot transactions 1% to $23.64 per ounce, and the price of platinum stabilized at $918.59, while palladium fell 0.2% to $1,076.26.
