Gold futures went on a roller-coaster ride last week, first rallying to a 10-month high before giving back most of those gains then rebounding late in the week to settle higher.
Early in the week, the market was driven higher by a weaker U.S. Dollar, which led to increased foreign demand for the dollar-denominated asset. Optimism around U.S.-China trade discussions dimmed the dollar’s appeal.
Gold prices peaked for the week after the U.S. Federal Reserve’s Monetary Policy Meeting Minutes were perceived as less-dovish. This helped drive up U.S. Treasury yields, helping to make gold a less-attractive investment. Higher rates reduce investor interest in non-yielding bullion. Gold was able to bounce back, however, on Friday to post its second weekly gain as disappointing U.S. economic data stoked worries about a global slowdown.
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