Gold prices jump as US bond yields tumble

Gold alloys

Gold prices gained ground today, July 29, on the back of a drop in US bond yields, despite the rise in the US dollar index in anticipation of the Federal Reserve meeting this week.

Bullion for August delivery climbed by 0.36%, or $8.50, to $2,389.50 an ounce at 11:04 am Makkah time, with spot prices also up 0.16% to $2,391.09 per ounce.

Similarly, silver futures for July delivery rose 0.43% to $28.14 per ounce, in tandem with a 0.37% hike in platinum spot prices to $943.81 an ounce.

Elsewhere, the US dollar index, which gauges the greenback's strength against a basket of six currencies, advanced slightly by 0.1% to 104.42 points, while the yield on US 10-year bonds plunged by 3.5 basis points to 4.164%.

The yellow metal’s positive performance was buoyed by forecasts that the Federal Reserve would end its current monetary tightening cycle by next September, after fixing the basic interest rates within the 5.25-5.50% range at its meeting scheduled for July 30-31.