Sanaa: Gold rose for the fourth consecutive session on Tuesday, supported by a weaker dollar and lower US Treasury yields, as weaker-than-expected US jobs data reinforced the likelihood of a September interest rate cut. Spot gold rose 0.1 percent to $3,375.89 per ounce. US gold futures also rose 0.1 percent to $3,430.40. The yield on the benchmark 10-year Treasury note fell to its lowest level in a month.
According to Yemen News Agency, the increase in gold prices is driven by market expectations that the Federal Reserve might cut interest rates in response to the recent economic data. A weaker dollar generally makes gold more attractive to investors using other currencies, while lower yields reduce the opportunity cost of holding non-yielding bullion.
The anticipation of a rate cut comes after the release of weaker-than-expected US jobs data, which has influenced investors' outlook. The decline in Treasury yields further supports gold prices, as lower yields tend to benefit non-interest-bearing assets like gold.
Investors are closely monitoring upcoming economic indicators and Federal Reserve announcements for further guidance on monetary policy. The gold market's reaction highlights the ongoing sensitivity to shifts in economic data and expectations of policy adjustments.