Gold Prices
Gold prices climbed in European trade on Wednesday, extending gains for the second consecutive session, reaching three-week highs and approaching recent record peaks, as U.S. 10-year Treasury yields fell.
Recent dovish comments from some Federal Reserve officials have increased the likelihood of a 0.25% rate cut by the Fed in November, while traders await further signals on the direction of U.S. interest rates.
Prices
Gold prices rose by 0.7% today, reaching $2,682 an ounce, the highest since September 26, after dipping to a session-low of $2,658. On Tuesday, gold increased by 0.5%, marking its third gain in four days as U.S. yields eased. Gold had previously hit a record high of $2,685 an ounce on September 26, before undergoing a brief correction.
U.S. Yields
U.S. 10-year Treasury yields fell by 0.75% today, retreating from three-month highs of 4.142%, which supported non-yielding assets like gold.
Fed Remarks
San Francisco Fed President Mary Daly stated that the Fe
d is on track for more rate cuts this year, as long as economic data aligns with expectations. Following her comments, the FedWatch tool showed a 95% chance of a 0.25% rate cut in November.
SPDR Gold Trust
Gold holdings in the SPDR Gold Trust increased by 4.02 tonnes yesterday, bringing the total to 884.59 tonnes, the highest since September 2023.