Gold futures rebounded after early weakness and settled at five-month high on Wednesday, as the yields on long-term U.S. Treasury Notes dropped ahead of the upcoming jobs data.

The dollar’s fall from higher levels contributed as well to the yellow metal’s uptick.

The dollar index, which rose to 90.25 in the European session, dropped to 89.90. It had closed at 89.83 on Tuesday.

The yield on 10-year U.S. Treasury Notes dropped to 1.595%.

Gold futures for August ended up by $4.90 or 0.3% at $1,909.90, recovering from a low of $1,896.40.

Silver futures for July closed higher by $0.102 or 0.4% at $28.204 an ounce, while Copper futures for July settled at $4.5915 per pound, down $0.0620 or 1.3% from the previous close.

Gold futures edged higher after the Federal Reserve released its Beige Book, which said the U.S. economy increased at a somewhat faster rate from early April to late May.

The Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, still described the pace of economic growth as moderate.

The Fed said the effects of expanded vaccination rates were most notable in consumer spending, as increased leisure travel and restaurant spending augmented ongoing strength in other spending categories.

The material has been provided by InstaForex Company – www.instaforex.com

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