Gold prices rose on Wednesday, as the dollar and US Treasury yields declined, while palladium remained near record highs, supported by concerns about a supply shortage.
Gold rose in spot transactions (0.3%) to $ 2975.10 an ounce in the late trading session in the New York market, after falling about (0.8%) in the Tuesday session.US gold futures rose (0.5%) to settle at $ 1784.30 an ounce.
The yield on US Treasury bonds for ten years fell from high levels recorded earlier, while the dollar index fell from its highest level in two weeks, which helps support the yellow metal.
The higher yields threaten the attractiveness of gold as a hedging tool in the face of inflation because it increases the opportunity cost of holding the yellow metal that yields no return.
Among other precious metals, palladium fell (0.36%) to $ 2,972.80 an ounce after hitting an all-time high of $ 3017.18 on Tuesday, boosted by concerns over a shortage of the metal used in car exhaust scrubbers to reduce emissions.
Silver (0.34%) fell to $ 26.44 an ounce, while platinum fell (0.34%) to $ 1224.80 an ounce. Both minerals recorded their highest levels in more than two months in Tuesday’s session.