Gold prices have risen significantly: the main reasons
21 August 16:07
Gold prices hit a nearly three-month high on Friday, August 21, and could end the third consecutive week in positive territory thanks to a weaker dollar and the U.S. Treasury’s decision to increase the volume of government bond purchases, "Komersant Ukrainian" reports, citing Reuters.
The spot price of gold rose 1.42% to $4,582.22 per troy ounce.
“We’ve seen the dollar weaken, which has supported not only gold but also other precious metals, along with a strong move in yields,” noted Brian Lan of GoldSilver Central.
U.S. Treasury Secretary Scott Bessent said the size of the buyback program could be increased again. On Wednesday, the department announced measures to support long-term bonds in an effort to at least temporarily halt the rise in Treasury yields.
“Now the market’s focus is shifting to whether the (Treasury’s) program will be expanded, and upcoming U.S. economic data and the Jackson Hole symposium (August 27–29) will likely determine the future trajectory of bond yields and the dollar,” noted Christopher Wong of OCBC.
According to the CME FedWatch tool, traders are pricing in a 67% probability that the Federal Reserve will not change interest rates in September and a 33% probability of a rate hike.
Palladium rose 2.03% to $1,361 per ounce, while silver rose 2.57% to $69.83 per ounce. The price of platinum jumped 3.73% to $1,896.1.
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