Gold firms near 4-1/2-month peak on weaker U.S. dollar, yields


Gold bars being cast at a plant by Gulidov Krasnoyarsk Non-Ferrous Metals Plant in Russia.

Kirill Kukhmar | TASS | Getty Images

Gold prices held firm near a 4-1/2-month high on Wednesday as a drop in U.S. Treasury yields and a weaker dollar supported the safe-haven metal.


Spot gold was steady at $1,899.11 per ounce by 0041 GMT, after hitting its highest since Jan.8 at $1,899.11 on Tuesday.

U.S. gold futures edged 0.1% higher to $1,899.60 per ounce.

The dollar index was pinned near a 4-1/2-month low against its rivals, making gold cheaper for other currency holders.

Benchmark U.S. Treasury yields fell to a two-week low of 1.56% overnight, reducing the opportunity cost of holding non-interest bearing gold.

U.S. consumer confidence hovered at a 14-month high in May as optimism over jobs tempered concerns about rising inflation and diminishing government financial support.

The U.S. Federal Reserve can curb an outbreak of inflation should it occur…

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