Gold Up on Report China May Slow US Treasury Buys
$GLD, $USD, $JPY
Gold rose Wednesday, hitting its highest mark in 4 months, as the USD declines on a report that Chinese officials had recommended slowing or halting purchases of US Treasury securities, the Treasury market was flat to unchanged at its close Wednesday.
USD under pressure Vs JPY after the Bank of Japan (BOJ) moved to trim its long-dated government bond purchases this week, was on track to post its biggest 1-day drop Vs JPY in 7 weeks.
.DXY finished down 0.3% at 92.28
The USD also lost ground Vs a basket of major currencies.
Spot Gold was up 0.5 percent at 1,318.67 oz by 1:41p EST (1841 GMT). Its session high of 1,326.56 was its highest since 15 September.
US Gold futures for February delivery settled up 5.60, or 0.4%, at 1,319.30 oz.
Rising Treasury yields can pressure prices for Gold, but USD’s slide helped Gold shrug off any impact.
A possible slow-down or halt to China purchasing US Treasury yields could have significant repercussions.
The tightening effect of such measures would likely have an impact on how many times the Fed raises interest rates this year, which is why we’ve seen a corresponding drop in the dollar.
Among other precious metals
Palladium dropped 1.5% at 1,083.97 oz, after hitting a record high Tuesday at 1,111.40.
Platinum was up 0.9% at 973.60 oz, after hitting a 4-month high at 973.90.
Silver was up 0.4% at 17.01 oz, after marking a low of 16.86, its lowest since 29 December 2017.
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