Gold remained flat, maintaining its gains after the Bank of Japan’s change in the yield curve policy, which put pressure on the dollar.
Gold retained its gains on Tuesday after the Bank of Japan’s (BOJ) unexpected yield curve policy change shook the markets.
Spot gold is trading at $1,814. On the other hand, Gram gold approached the record level of 1093 TL with 1092 TL on Tuesday and closed the trading day with 1088 TL. Gram gold finds buyers at 1088 TL in the markets.
Spot gold was up 1.7 percent on Tuesday after the BOJ’s move that caused the dollar to plummet. The dollar-priced, non-interest-bearing precious metal has traditionally tended to move negatively with dollar and treasury yields.
BOJ Japan surprisingly raised its 10-year bond yield ceiling to 50 basis points, and the two-year bond yield rose two basis points to 0.01 percent, turning positive for the first time since 2015, according to data released Wednesday by Japan Bond Trading.
Market players will be watching a series of US economic data this week, including the Fed’s primary inflation indicator, which may provide more clues to the rate hike path.
Experts emphasize that the market moves may become more challenging as the holiday season approaches and liquidity decreases.
