Gold Surges Due To Weakening Dollar

London: 21 November 2023 (TraderMade): Gold prices experienced an uptick on Tuesday, fueled by a declining US dollar and Treasury yields. Market participants eagerly await the Federal Reserve's meeting minutes for insights into the central bank's stance on interest rates.

Gold (XAUUSD) closed on Monday at 1977.98498. By 8:04 AM GMT, it had shown an increase of 0.795% to 1993.71.

The dollar reached a 2-1/2-month low due to expectations of lower US interest rates. A weakened dollar makes gold more affordable for holders of other currencies. Meanwhile, US 10-year Treasury yields remained near two-month lows.

Market participants look forward to the Fed's meeting minutes, scheduled for 7:00 PM GMT. The anticipation is driven by signals of slowing US inflation, raising expectations that the central bank may halt interest rate hikes. Lower interest rates typically reduce the opportunity cost of holding gold.

Silver (XAGUSD) rose 1.19% to 23.718 compared to Monday's close at 23.4395. Similarly, Platinum (XPTUSD) climbed to 923.68, showing a 0.034% increase compared to yesterday's close at 923.36999.

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