Gold Rises Supported by Declining Yields and Dollar Awaiting Federal Reserve Announcement
Gold prices saw a slight increase during morning trading on Wednesday, July 30, supported by the decline in US Treasury bond yields and a slight drop in the value of the dollar, amid investors' anticipation of the Federal Reserve's announcement on monetary policy trends.
Gold in spot trading rose by 0.1% to reach $3329.27 per ounce by 02:36 GMT, while gold futures in the US market also rose by the same percentage to reach $3326.90.
Kelvin Wong, chief market analyst at OANDA, explained, "There is a possibility that the Fed may lean towards a more hawkish stance, as evidenced by the movement in US bond yields," noting that the dollar also "experienced some decline."
The dollar index retreated from its highest level in over a month, while US Treasury bond yields remained close to their recent lows.
This rise in gold comes despite the pressure exerted by US President Donald Trump to lower interest rates, as analysts generally expect the Fed to maintain its current policy, with markets focusing on the possibility of a rate cut in September.
It is known that gold, as a safe haven asset, is directly affected by changes in interest rates, tending to perform better in a low-interest environment.
In other precious metals markets, silver fell by 0.1% in spot trading to $38.14 per ounce, while platinum dropped by 0.6% to $1386.31. On the other hand, palladium rose by 0.4% to reach $1262.99.
