Gold futures settled higher on Wednesday, extending gains to a fifth straight session, as the yields on U.S. bonds continued to dip, hitting their lowest level in over four months.
A somewhat quiet U.S. dollar contributed as well to the yellow metal’s uptick.
Gold futures for August ended up by $8.00 or about 0.4% at $1,802.10 an ounce, the highest close in about three weeks.
Silver futures for September ended down by $0.045 at $26.129 an ounce, while Copper futures for September settled at $4.3225 per pound, up $0.0715 from the previous close.
Benchmark 10-year Treasury yields dropped to a new 4-1/2-month low today as investors assessed risks to growth stemming from the infectious new COVID-19 delta variant in Asia, Latin America and parts of Europe.
The minutes of the Federal Reserve’s latest monetary policy meeting, released a little while ago, suggest the central bank will not be in a hurry to begin scaling back its asset purchase program.
The Fed has repeatedly said it plans to continue to its asset purchases at a rate of at least $120 billion per month until “substantial further progress” has been made toward its goals of maximum employment and price stability.
The minutes of the June meeting reiterated Fed Chair Jerome Powell’s view that “substantial further progress” has not yet been met, although participants expected progress to continue.
The material has been provided by InstaForex Company – www.instaforex.com