Gold sustained a four-day upward trend as robust demand for Treasuries indicated investor confidence in the likelihood of the Federal Reserve implementing monetary policy loosening in the coming year. The surge in US bonds on Wednesday led to a decline in yields to levels not observed for months, driven by the growing anticipation that inflation will continue to decelerate, prompting policymakers to initiate interest rate cuts.
Markets based on swaps are currently pricing in an almost 90% probability of a rate cut by March. The decline in yields and interest rates tends to favor non-interest-bearing assets like gold.
The precious metal has seen a notable 14% increase for the year, positioning itself for its first annual gain in three years. In early December, bullion reached a record-breaking $2,135.39 per ounce.
As of 8:14 a.m. in Singapore, gold registered a 0.1% uptick, reaching $2,079.74 per ounce. The Bloomberg Dollar Spot Index remained steady after experiencing a 0.4% decline in the previous session. Silver demonstrated an increase, platinum remained relatively unchanged, while palladium experienced a decline.
