© Reuters.
Gold prices saw a slight increase today, with trading at $1992 as US markets took a break for Thanksgiving, resulting in lower trading volumes. The precious metal has been supported by a decline in US Treasury yields and a weakening of the US dollar, maintaining its position in the tight range of $1990-$2000.
From the beginning of November, US Treasury bond yields have experienced a significant drop, decreasing sharply by over six percent or nearly thirty basis points. Concurrently, the US dollar has shown a marked decrease against other major currencies, with the DXY index falling from above 106 to below 104, indicating a nearly three percent decline.
Earlier this week, gold momentarily surpassed the $2000 mark and has since remained near that level. This performance comes even as market participants are gearing up for the release of upcoming S&P Global PMIs, which could signal economic challenges and potentially affect Federal Reserve policy decisions on interest rates.
Despite expectations of continued rate hikes by the Federal Reserve and an approximate eighty-five basis points reduction projected by money market futures for next year, gold’s path…
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