Gold Manages Back to Back Wins As Dollar Value Slips Slightly Back

Gold Prices Rise

Gold prices came up slightly higher on Wednesday, gaining its second straight finish in positive territory.  Meanwhile the US Dollar and US Bond yields both experienced a slight backslide which provided the necessary support for bullion to rise.

In December gold added $2.70, or 0,2% to end at $1,221 an ounce.  However, the rising value of the USD makes owning gold a less attractive prospect.  The reason being is that wealthy treasury yields often undercut the benefits of owning the precious metal that doesn’t bear a yield.  Basically, a strong dollar makes the dollar-backed commodity significantly more expensive for buyers using foreign currencies.

The ten year treasury note yield TMUBMUSD10Y, -0.34% was standing at 2.96% late on Tuesday, while the ICE U.S. Dollar Index DXY, -0.05% also fell slightly, less than 0.1% lower to 95.16.

The dollar index is a gauge of the dollar itself against a half dozen rival currencies.

This was the first time Gold has managed to post back to back wins since July 25th according to Fact Set Data.


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