Gold Prices Soar as Dollar Weakens and Treasury Yields Drop

Gold prices rose on Wednesday, driven by a weaker dollar and falling Treasury yields. Investors anticipate U.S. jobs data for insights on Federal Reserve policy. Expected slower job growth could lead to interest rate cuts, boosting gold’s appeal. Other precious metals also saw gains.

On Wednesday, gold prices experienced a notable rise, spurred by a weakened U.S. dollar and declining Treasury yields. Investors are closely monitoring upcoming U.S. jobs data for indications about the Federal Reserve's future policy direction.

Spot gold increased by 0.5%, reaching $5,048.27 per ounce, while U.S. gold futures for April delivery saw an 0.8% hike to $5,072.60 per ounce. Analyst Carsten Menke from Julius Baer attributed the trend to the dollar's near two-week low, enhancing gold's attractiveness for foreign buyers.

Additionally, a drop in benchmark 10-year U.S. Treasury yields added to the allure of holding non-yielding assets like gold. As expectations build around potential interest rate cuts in light of anticipated slowing job growth, investors are keen on today's labor report for guidance.

(With inputs from agencies.)