WASHINGTON (dpa-AFX) - Gold prices rebounded on Thursday after a minor correction on Wednesday. The price movement came as markets digested the Fed's widely expected quarter percentage rate cut, and projection of just one more rate cut in 2026. The U.S. Dollar's decline, the softening in bond yields as well as the liquidity infusion anticipated through the Federal Reserve's purchases of shorter-term Treasury securities boosted sentiment.
The six-currency index which measures the U.S. dollar's strength against a basket of currencies is currently at 98.50 versus 98.79 at the previous close.
Ten-year sovereign bond yields eased across regions, reducing the opportunity cost of holding gold that is typically non-interest-bearing. Ten-year U.S. treasuries declined 0.82 percent whereas ten-year Japanese government bond yields witnessed a drop of 1.4 percent.
Gold Futures for February settlement gained 0.28 percent overnight to trade at $4,236.55, versus the previous close of $4,224.70. The day's trading range has been between $4,231.50 and $4,277.70 as compared with the 52-week trading that ranged between $2,585.9 and $4,398.00.
Despite today's rebound, weekly loss stands at 0.18 percent and monthly gains add up to 0.5 percent. Amidst year-to-date gains of more than 60 percent, the price surge over the 3-year horizon is now more than 137 percent.
Spot Gold however slipped 0.43 percent overnight to trade at $4,210.51 per troy ounce. The day's trading range has been between $4,204.42 and $4,247.79. Spot Gold had ranged between $2,583.49 and $4,381.60 over the past 52 weeks.
At current prices, Gold Futures and Spot Gold have both gained close to 57 percent over the past year.
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