Gold futures rose for the fifth straight session on Wednesday, ahead of the release of minutes from the Federal Open Market Committee’s most recent meeting, which showed members considering the start of a reduction in asset purchases. The rise in bullion was aided by a stable US currency and a drop in 10-year Treasury note yields to levels not seen since February, boosting demand for precious metals.
Gold’s recent positive trend, which helped propel the precious metal into a golden cross on Tuesday when the 50-day moving average crossed above the 200-day moving average, has been bolstered by safe-haven asset purchases and muted dollar swings. Gold GC00, +0.60 percent in August
+0.60 percent GCQ21
Following a 0.6 percent jump on Tuesday that drove the metal to roughly a three-week high amid its longest series of gains since a six-session streak ended May 20, gold moved $8 higher, or 0.4 percent, to settle at $1,802.10 an ounce. Since June 16, gold hasn’t finished at or above the psychologically critical $1,800 mark. Bullion trading is taking place after 10-year TMUBMUSD10Y, 1.315 percent and 30-year TMUBMUSD30Y, 1.936 percent Treasury rates fell to their lowest levels since February. Lower yields favor bullion because they reduce the expense of holding non-yielding precious metals. Before the minutes from the Fed’s most recent policy meeting were revealed at 2 p.m. Eastern, gold had settled. According to the minutes from the Federal Open Market Committee’s June 15-16 meeting, officials sought to taper asset purchases, which are now at $120 billion per month, as a “matter of sensible planning.” Several officials urged for cutting the Fed’s monthly mortgage-backed securities purchases by $40 billion, and “several” Fed members saw the economy achieving the central bank’s definition of “substantial progress” sooner than expected. Silver futures for September delivery are also available on the Comex.
SI00, a gain of 0.29 percent
SIU21, +0.29% fell 4.5 cents, or 0.2 percent, to $26.129 an ounce, more than reversing a similar decline on Tuesday for gold’s sibling metal. After a 0.3 percent loss on Tuesday, October platinum PLV21, +0.09% fell $2.10, or 0.2 percent, to close at $1,081.90 an ounce. After a 0.1 percent advance on Tuesday, September palladium PAU21, +2.29 percent jumped $52.20, or 1.9 percent, to settle at $2,848.30 an ounce. Following a 0.6 percent drop the day before, the September copper contract HGU21, +1.48 percent gained 7.15 cents, or 1.7 percent, to end at $4.3225 a pound./n
