Wednesday, 21 October 2020 | 11:27 WIB

Gold Price Edges up as US Govt Bond Yields Plummet

Illustration: Gold bars.

CHICAGO, NNC -- Gold futures on the COMEX division of the New York Mercantile Exchange edged higher in late Friday (5/18/2018) trading, as US government bond yields declined slightly.

The most active gold contract for June's delivery was up USD1.9 or 0.15 percent, to close at USD1,291.3 an ounce.

Lower bond yields raise demand for non-yielding precious metals, as the 10-year US Treasury yields are falling from their highest level since 2011.

The yield on the 10-year US Treasury bond eased five basis points to 3.06 percent.

However, the greenback puts pressure on precious metals. The US dollar index, which measures the US currency against six major rivals, rose 0.18 percent to 93.638 at 8 pm GMT.

Gold and the dollar usually move in the opposite direction, which means if the US dollar rises then gold futures will decline, as gold priced in US dollars becomes more expensive for holders of other major currencies.

Other precious metals, silver for July's delivery, fell 2.6 cents, or 0.16 percent, to settle at USD16.455 an ounce. Meanwhile, platinum for July's delivery plunged USD5.6, or 0.63 percent, to close at USD886.5 an ounce, according to Antara.