Global Stock Markets
Gold jumped to its highest in nearly four months on Wednesday as the
dollar tumbled to a six-week low versus the Japanese yen and slid
against the euro, lifting assets priced in the U.S. currency and
offsetting a rise in global yields.
The dollar fell as much as 1.2 percent against the yen after the Bank of Japan’s move to trim its long-dated government bond purchases earlier this week, putting the U.S. currency on track for its biggest two-day drop in nearly eight months.
The BoJ move also lifted bond yields across the world, generally a negative factor for gold as it increases the opportunity cost of holding non-interest bearing bullion. However, the impact of the dollar’s fall outweighed that factor.
Spot gold was up 0.9 percent at $1,324.40 an ounce at 1107 GMT, having earlier touched its highest since Sept. 15 at $1,326.56. U.S. gold futures for February delivery were up $11.50 an ounce at $1,325.20.
The dollar’s slide against the yen also saw it move lower against the euro, with the single currency up 0.6 percent versus the U.S. unit.
Major government bond yields hit multi-month highs on Wednesday as investors reevaluated the likelihood of continued easy-money policies by the world’s major central banks following the BoJ move. The 10-year U.S. Treasury yield hit 2.57 percent for the first time since March.
Among other metals, palladium was down 0.1 percent at $1,098.50 an ounce, after hitting a record high on Tuesday at $1,111.40. Tightening emissions standards and a switch away from diesel cars to more palladium-heavy gasoline models has shored up demand expectations for the autocatalyst metal.
Silver was up 1.2 percent at $17.16 an ounce, while platinum was 0.1 percent higher at $965.90 an ounce.
The dollar fell as much as 1.2 percent against the yen after the Bank of Japan’s move to trim its long-dated government bond purchases earlier this week, putting the U.S. currency on track for its biggest two-day drop in nearly eight months.
The BoJ move also lifted bond yields across the world, generally a negative factor for gold as it increases the opportunity cost of holding non-interest bearing bullion. However, the impact of the dollar’s fall outweighed that factor.
Spot gold was up 0.9 percent at $1,324.40 an ounce at 1107 GMT, having earlier touched its highest since Sept. 15 at $1,326.56. U.S. gold futures for February delivery were up $11.50 an ounce at $1,325.20.
The dollar’s slide against the yen also saw it move lower against the euro, with the single currency up 0.6 percent versus the U.S. unit.
Major government bond yields hit multi-month highs on Wednesday as investors reevaluated the likelihood of continued easy-money policies by the world’s major central banks following the BoJ move. The 10-year U.S. Treasury yield hit 2.57 percent for the first time since March.
Among other metals, palladium was down 0.1 percent at $1,098.50 an ounce, after hitting a record high on Tuesday at $1,111.40. Tightening emissions standards and a switch away from diesel cars to more palladium-heavy gasoline models has shored up demand expectations for the autocatalyst metal.
Silver was up 1.2 percent at $17.16 an ounce, while platinum was 0.1 percent higher at $965.90 an ounce.
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