Gold futures settled higher on Wednesday as a weak dollar and lower Treasury yields pushed up the demand for the safe haven yellow metal.
Traders, in addition to digesting UK's budget and the Bank of Canada's policy announcement, also looked ahead to the upcoming monetary policy announcements from the Bank of Japan and the European Central Bank.
The Bank of Canada today left its interest rate unchanged, but terminated its Quantitative Easing program, reflecting the progress in the economic recovery from the crisis.
UK Chancellor Rishi Sunak raised the public spending by a massive GBP 150 billion in an effort to underpin a strong economic recovery after the crisis caused by the coronavirus pandemic.
The dollar index dropped to 93.69 before recovering some ground. It was last seen hovering around 93.80, down 0.16% from the previous close.
The yield on U.S. 10-year Treasury note dropped to around 1.565% around noon, while the yield on 30-year Treasury bond fell to 1.973%.
Gold futures for December ended up by $5.40 or about 0.3% at $1,788.80 an ounce, recovering well from the day's low of $1,784.30. Gold futures had ended lower by about 0.7% on Tuesday.
Silver futures for December ended higher by $0.103 at $24.191 an ounce, while Copper futures for December settled at $4.3895 per pound, down $0.0965 from the previous close.
Data released by the Commerce Department showed durable goods orders pulled back by much less than expected in the month of September, falling by 0.4% after jumping by a downwardly revised 1.3% in August.
Economists had expected durable goods orders to slump by 1.1% compared to the 1.8% spike that had been reported for the previous month.
Excluding a steep drop in orders for transportation equipment, durable goods orders climbed by 0.4% in September after rising by 0.3% in August. The increase matched economist estimates.
The material has been provided by InstaForex Company - www.instaforex.com
source http://www.mt5.com/forex_news/quickview/2184662/
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