Gold rises as U.S. Treasury yields fall

By Xu JingUnreguser

CHICAGO, Nov. 29 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rose on Wednesday as the U.S. Treasury's bond yields fell.

The most active gold contract for February delivery rose 6.90 U.S. dollars, or 0.33 percent, to close at 2,067.10 dollars per ounce.

The U.S. Commerce Department reported Wednesday that U.S. gross domestic product (GDP) increased at a 5.2-percent annualized rate in the third quarter, revised up from the previously reported 4.9-percent growth, the fastest pace of expansion since the fourth quarter of 2021. Robust economic data capped gold's growth somewhat.

Federal Reserve Bank of Atlanta President Raphael Bostic said in an essay on Wednesday that he expects U.S. growth to slow and inflation to continue to ease on the back of tight monetary policy.

"The research, data, survey results, and input from business contacts tell me that tighter monetary policy and tighter financial conditions more broadly are biting harder into economic activity," Bostic said. "I don't think we've seen the full effects of restrictive policy, another reason I think we'll see further cooling of economic activity and inflation."

Richmond Federal Reserve Bank President Thomas Barkin said in an interview with CNBC on Wednesday that he is "skeptical" that inflation is on its way down to 2 percent, and wants the option of another rate hike in case inflation gains steam.

"If inflation is going to flare back up, I think you want to have the option of doing more on rates," Barkin said.

Market analysts hold that the near-term outlook for gold remains bullish.

Silver for March delivery rose 14.10 cents, or 0.56 percent, to close at 25.443 dollars per ounce. Platinum for January delivery fell 8.80 dollars, or 0.93 percent, to close at 941.40 dollars per ounce.

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In World

Scholz, marking Ukraine invasion anniversary, calls for stronger Europe
U.S. to rally support for Haiti mission at CARICOM summit, State Dept official says
Moon lander described as tipped over sideways but 'alive and well' on lunar surface
U.S. agricultural futures fall
U.S. stocks close mixed
US imposes sanctions on Russia's leading tanker group Sovcomflot - Treasury Dept website
Chinese Cinema Week kicks off in Bulgaria
Crude futures settle lower
Gold rises as U.S. dollar weakens
U.S. dollar ticks down

Others Also Read