Gold rises again, erasing most of its past losses.

Gold prices recorded a strong rise during trading on Thursday, recovering from most of the losses incurred during the previous session, due to the noticeable decline of the US dollar and US Treasury yields.

In this context, the drop in the dollar in the currency market contributed to bolstering the upward momentum of gold prices denominated in greenbacks, making the precious metal a less costly investment opportunity for holders of other foreign currencies apart from the dollar, as the dollar index fell significantly.

At the same time, long-term US Treasury yields decreased, significantly boosting the demand for gold during trading; investors found acquiring gold a better option compared to the yields on bonds.

Amidst rising trades, the yield on the 10-year US Treasury fell by about 1.02% to 4.202%, and the yield on the 20-year US Treasury decreased by 0.76% to record 4.556%. Similarly, the yield on the 30-year US Treasury saw a decline of approximately 0.80% to 4.479%.

The geopolitical situation continues to strongly influence the allure of gold as one of the most popular safe-haven assets, as Russia officially approved the signing of a strategic treaty with North Korea on Thursday, which may involve military cooperation, potentially fueling tensions in the region, especially with Western countries.

Current Gold Prices

Looking at today’s trading, it is evident that gold prices have risen in spot transactions by about 0.72% to reach $2,734.72 per ounce, while gold futures contracts for December delivery increased by approximately 0.68% to record $2,748.00 per ounce.