Gold futures surge $33.80 on weak dollar bond yields to support the market

The price of gold futures closed Wednesday (September 28) up $33.80 on the positive side of the dollar’s depreciation. and the fall in US government bond yields.

Comex gold contract Delivered in Dec. Plus $33.80, closing at $1,670.00/oz

A weakening dollar will increase the attractiveness of gold. by making gold contracts cheaper for holders of other currencies The fall in US government bond yields. It will reduce the opportunity cost of holding gold. Because gold is an asset that does not return in the form of interest.

In addition, gold prices also gained positive factors as the Bank of England (BOE) announced measures to stabilize the financial markets. by buying unlimited government bonds to support the pound and pressured British government bond yields to decline.

Investors are flocking to sell British government bonds. After last week the Government revealed huge tax cuts Including measures to improve homes and businesses that have been affected by the increase in energy prices. This has caused many parties to worry about the state of Britain’s finances due to the increasing debts of the government.

The parade of such government bond sales This caused 30-year government bond yields to jump above 5% today for the first time in 20 years, or since 2002, before weakening. After the BoE announced measures to stabilize the market.

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