Gold was seen to channel its climbing pace on Wednesday by rebounding from previous levels following the release of mixed US economic data and the assurance of interest rate cuts by the Federal Reserve (Fed).
As a result, US Treasury yields fell but the US dollar rose slightly to a position of 104,460 points (0.22%) tracking the performance of other major currency groups on Wednesday.
Meanwhile, the price of gold is now at $2,364.19 which is up by 0.38% since it opened in the Asian trading session this morning.
The benchmark US 10-year yield extended its weekly losses as it fell three basis points to 4.297%, its lowest since April on a weaker-than-expected US jobs report.
Recently, the Institution of Supply Management (ISM) showed that the US economy continued to grow in its services sector, helping the USD and gold to remain strong.
However, US yields continued to lower as investors began to expect a rate cut of 25 basis points by the end of 2024.
Data from the Chicago Board of Trade (CBOT) related to the December 2024 Fed data is targeting 37 basis points on policy easing later.
The yellow metal commodity is also now seen to be stabilizing after seeing a fall of over 4% earlier in the week. Additionally, optimistic Caixin PMI data from China implies that the economy there will continue to grow and continue to support the value of gold.
For now, US Treasury bond yields are falling and the USD currency is extending its losses since the beginning of the week.
