Gold Price Today, October 19: Gold prices moved higher in early trade on Monday (October 19), hovering close to the USD 4,200 per ounce mark, supported by weakness in the US dollar and lower US Treasury yields.
As of 5:45 am, spot gold was up 0.4 per cent, or USD 15, at USD 4,181.28 per ounce. During the session, the precious metal touched an intraday high of USD 4,187.66.
Spot silver also traded higher, gaining 0.5 per cent to USD 57.26 per ounce.
On the domestic market front, gold and silver prices were not trading at the time of writing. Gold and silver futures on the Multi Commodity Exchange (MCX) had settled at Rs 148,000 per 10 grams and Rs 211,418 per kg, respectively.
Why Gold Prices Rose Today
Bullion prices drew support from weakness in both the US dollar and US Treasury yields.
The US dollar, measured against a basket of six major currencies, traded lower and slipped below the 102 mark.
At the same time, the United States 10-Year Bond Yield declined 0.7 per cent to 5.069.
A weaker US dollar and falling Treasury yields typically support gold prices as they reduce the opportunity cost of holding the non-yielding metal and make it cheaper for holders of other currencies.
Energy prices also support bullion
Gold also found support from softer energy prices during the session. Brent crude was down 1.5 per cent to USD 108, while WTI futures mirrored the trend.
Weaker oil prices can support gold by easing inflation pressures and weakening commodity-linked currencies, often increasing demand for safe-haven assets such as gold.
Rate hike expectations remain elevated
On the interest rate front, expectations of a rate hike in December remained high at about 92 per cent.
Rising rate hike expectations are typically negative for gold, as higher interest rates increase the opportunity cost of holding the non-yielding precious metal.
Gold Price Outlook
Comments from US Federal Reserve officials and economic data due later in the week will be monitored for indications on the future path of monetary policy and its potential impact on gold prices.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)