Introduction

Gold rose above $1,900 an ounce on Tuesday, helped by a slight decline in the dollar and bond yields as investors look to a central bank symposium at Jackson Hole later in the week.

Gold Prices

Spot gold rose 0.5% to $1,902.50 an ounce by 1009 GMT. The price of gold futures in the US rose by 0.5% to $1932.30 per ounce.

Analyst’s Opinion

“Right now I think gold prices are getting support from a correction in the dollar and looking for good deals at those levels,” independent analyst Ross Norman said, according to Reuters.

US Treasury Yield

“We don’t expect big moves in gold before Jackson Hole (symposium) because people will be watching. But the US Treasury yield, which is at a 16-year high, is still a major issue that no one talks about,” he added.

Impact of Dollar and US Treasury Yields

The dollar fell 0.2% against rival currencies, making gold less expensive for holders of other currencies, and US Treasury yields have fallen in a decade to their highest level since November 2007.

Future Expectations

Now the focus is on European Central Bank President Christine Lagarde and Federal Reserve Chairman Jerome Powell speaking at Jackson Hole later this week to forecast interest rate expectations.

Raising interest rates increases bond yields and reduces the attractiveness of gold, which is not profitable.

Other Precious Metals

In other precious metals, spot silver rose 0.3% to $23.24 an ounce. Platinum rose 1.2% to $920. Palladium rose 1.5% to $1,264.14.