Gold rises as US bond yields decline and eyes await the Federal Reserve meeting


Gold prices rose today, as US Treasury yields declined, while investors awaited a meeting of the Federal Reserve, which is likely to dispel concerns about increased inflation, according to “Reuters”.
The spot price of gold rose 0.2 percent to $ 1735.76 an ounce by 0600 GMT, while US gold futures rose 0.4 percent to $ 1735.90.
“At the moment, gold is winning by supporting declining revenues and investors taking the opportunity to buy gold at prices that are still low, betting on long-term uncertainties such as lower interest rates and increased inflation,” said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai.
It is likely that policymakers ’expectations at the next meeting of the Federal Open Market Committee indicate that the US economy will advance at the fastest pace in ten years in 2021, with the acceleration of vaccination activity with Covid-19 vaccines and the distribution of the stimulus package worth 1.9 trillion dollars to families.
Gold prices retreated last week to their lowest in nine months, as the rise of the dollar and the increase in US Treasury bond yields undermined demand for the non-yielding metal.
As for the other precious metals, silver was little changed, which recorded $ 26.27 an ounce, platinum rose 0.6 percent to $ 1220.21, and palladium advanced 0.5 percent to $ 2399.12.


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