Gold bottoms out around $1880 per ounce as dollar softens

Published on Sep 29, 2023 14:45

Gold is trying to witness some recovery after a heavy slide this week. The metal plummeted to a six month low of around $1880 per ounce following a sharp surge in the US dollar and rising US Treasury yields, as markets priced in expectations of higher interest rates. The US dollar surged to its highest point in ten months against a basket of global currencies, while the 10-year US yield reached its highest levels since 2007. Gold has tumbled this month, extending losses after the US Federal Reserve`s recent announcement of the potential for another rate hike before year-end and fewer rate cuts in the coming year further weighed on gold prices. However, the US dollar has now slipped a bit as the markets approached the quarter end and currently quotes under 106 mark. This is pushing up Gold after a near $80 per ounce correction in the commodity this month. The COMEX Gold futures are currently quoting up 0.55% at $1888 per ounce. The commodity is down 3.60% on the day.