Gold Sees Rapid Advances, Dollar Index Hovers Around One Week Low

28 Jul 2022 , 02:22 PM

COMEX Gold futures soared today amid weakness in the US dollar, hitting three week high above $1760 per ounce. COMEX Gold futures are trading at $1761 per ounce, up 2.50% on the day. The dollar index is languishing near a week low around 106, tracking lower treasury yields following Fed rate decision. The Federal Reserve on Wednesday announced its decision to raise interest rates by 75 basis points. The Fed said it decided to raise the target range for the federal funds rate to 2.25 to 2.50 percent in an effort to achieve its dual goals of maximum employment and inflation at a rate of 2 percent over the longer run. In a critical data today, the World Gold Council or WGC noted in latest Gold demand trends update that world Gold demand (excluding OTC) was 8% lower y-o-y at 948t. However, demand for the first half of the year was up 12% to 2,189t. Gold ETFs gave back some of their strong Q1 gains. Global holdings fell by 39t during the quarter, following the 273t of Q1 inflows.Powered by Commodity Insights