New York gold market conditions: Gold closes up more than 1% after dollar bond yields weaken following Fed plans to cut prices. By InfoQuest

InfoQuest – New York gold futures closed up more than 1% on Friday (August 23) as the dollar and bond yields fell. After comments from Mr. Jerome Powell, Chairman of the Federal Reserve (Fed), indicating that the Fed will cut interest rates in September.

The COMEX (Commodity Exchange) gold contract will be delivered in December. Up 29.60 or 1.18% to close at $2,546.30/ounce.

Cash contract for December delivery. Rose 78.5 cents, or 2.66%, to close at $30.256/oz.

Platinum contract for delivery in October. Rose $12.40 or 1.30% to close at $966.10/ounce.

Palladium contract for delivery in December. Rose $22.00 or 2.39% to close at $942.50/oz.

Powell said at a conference in Jackson Hole, Wyoming, on Friday that it is time for the Fed to cut interest rates. And inflation is close to the Fed’s target rate of 2%, which clearly shows that the Fed will cut interest rates soon.

The dollar index fell 0.8%, and the yield on the 10-year US Treasury note also fell after Powell’s speech. A weaker dollar makes gold cheaper and more attractive to holders of other currencies.

In addition, falling interest rates often increase the attractiveness of gold, which has no return in interest rates.

Traders expect a 59.5% chance of the Fed cutting interest rates by 0.25% in September, while there is a 40.5% chance of a 0.50% cut.

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