Gold Stabilizes Near $4,164 as Dollar Drops 0.5%
Gold stabilized near $4,164 as the dollar index dropped 0.5% and Treasury yields reached a 3-week low.
Gold prices stabilized near $4,164 per ounce at the end of the week's trading, levels close to the previous morning's price, amid a 0.5% decline in the dollar index and 10-year US Treasury bond yields reaching a three-week low.
In Vietnam, SJC gold bar prices rose by 300,000 dong to reach between 140.6 and 143.6 million dong per luong, amid local tracking of the precious metal's movement.
The weaker dollar and falling bond yields helped support gold, as lower yields reduce the opportunity cost of holding the non-yielding metal.
Market pricing indicates a 72% probability that the Fed will keep interest rates unchanged in October, and a 92% probability of a rate hike in December.
What do these terms mean?
Dollar Index: A measure of the value of the US dollar against a basket of major currencies, which often inversely affects gold prices.
Bond Yield: The percentage return earned annually by a bondholder; higher yields increase the attractiveness of bonds compared to gold.
SJC Gold Bars: Gold bars that are the most heavily traded in the Vietnamese market, measured in a local unit of weight known as the "luong".
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