Gold prices surge on weakening dollar and treasury yields

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KUWAIT CITY, May 18: Gold prices saw an uptick Friday following a significant surge in the previous session, as the dollar and Treasury bond yields retreated in response to US consumer price inflation data, which heightened the likelihood of a September interest rate cut, reports Al- Jarida daily. Spot gold prices rose by 0.2 percent to $2,391.78 per ounce, marking its highest level in over three weeks. Similarly, the US gold futures contracts increased by 0.1 percent to $2,396.10. The decline in the dollar against a basket of major currencies contributed to the rise in gold prices, as it made the yellow metal priced in US currency more affordable for holders of other currencies. Additionally, 10-year Treasury bond yields reached their lowest levels in over a month. Tim Waterer, chief market analyst at KCM Trade, noted, “With inflation showing signs of deceleration, gold demonstrated strength in early trading.” This suggests that investors are turning to gold as a hedge against potential economic uncertainties amid changing monetary policies.

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