Germany is leading the biggest rally in global bond markets since March’s banking rout as cooling inflation and a weakening economy suggest European Central Bank rate hikes are nearing an end. Borrowing costs, or bond yields, in the benchmark euro area issuer are down at least 20 basis points (bps) this week. Alongside British and U.S. peers, yields – which move inversely to bond prices – were set for their biggest weekly declines since mid-March…
By Administrator_ India
Gold prices fell on Wednesday morning in Asia, while the U.S dollar retreated marginally.
Gold Futures went down 0.28% to $1,788.35 by 11:08 PM ET. Reduced stimulus and interest rate hikes pushed government bond yields up, translating into a higher opportunity cost for holding bullion.
Upbeat corporate earnings and easing concerns about high inflation also dented bullion’s safe-haven appeal.
Tech giants Microsoft Corp and Google owner Alphabet Inc. both beat revenue expectations, while their equity gained globally.
Also, U.S. consumer confidence rose in October as concerns about high inflation were offset by positive labor market prospects, suggesting economic growth was picking up.
Investors now await news from the meetings of the Bank of Japan and European Central Bank, both due this Thursday.
The BOJ is set to maintain its massive stimulus program on Thursday and slash this year’s inflation forecast, which signals that it has no intention to follow crisis-mode policies, experts said.
As for other precious metals, silver fell 0.8% to $23.95 per ounce. Platinum fell 0.7% and palladium went down 0.3%.