Gold prices continued their upward trend in the European market on Wednesday, marking the second consecutive day of gains. This rise is attributed to buying activity around the $2,400 per ounce level, alongside a slowdown in the yield on US 10-year Treasury bonds.
Investors are closely monitoring the release of significant US economic data this week for insights into the potential timeline for the Federal Reserve's monetary policy easing.
Price Outlook:
On Wednesday, gold increased by 0.4% to $2,419.26, up from an opening level of $2,409.77, and recorded a low of $2,405.07.
On Tuesday, gold prices rose by 0.55%, marking the first gain in five days and recovering from a two-week low of $2,383.97 per ounce.
US Bond Yield:
The yield on US 10-year Treasury bonds fell by about 0.6 percentage points on Wednesday, continuing its decline for the second consecutive session, which supports the rise of non-yielding assets like gold.
US Interest Rate:
According to the "Fed Watch" tool by CME Group, futures pricing indicates a 96% likelihood of a 25 basis points US interest rate cut in September, and a 98% likelihood in November.
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