Gold rebounds as debt deal optimism weighs on dollar, yields

Gold prices rebounded on Tuesday as the dollar declined and Treasury yields dropped amid market optimism about the US debt ceiling arrangement. Spot gold surged 0.9% to $1,960.55 an ounce, while US gold futures increased 0.8% to $1,959.80. The lower dollar made bullion more affordable to non-US currency holders, while the 10-year Treasury yields hit a one-week low. Basic market optimism, along with traders squaring off end-of-month positions, further supported prices. However, gold could struggle until a new impetus comes along, according to Kitco Metals’ Senior Analyst, Jim Wyckoff.

Gold rebounds as debt deal optimism weighs on dollar, yields
Gold prices rebounded on Tuesday as the dollar declined and Treasury yields dropped amid market optimism about the US debt ceiling arrangement. Spot gold surged 0.9% to $1,960.55 an ounce, while US gold futures increased 0.8% to $1,959.80. The lower dollar made bullion more affordable to non-US currency holders, while the 10-year Treasury yields hit a one-week low. Basic market optimism, along with traders squaring off end-of-month positions, further supported prices. However, gold could struggle until a new impetus comes along, according to Kitco Metals’ Senior Analyst, Jim Wyckoff.