The effect of the weak dollar continues in gold

Gold held steady, holding onto gains after the Bank of Japan’s yield curve policy change that put pressure on the dollar. Gold held onto gains it made on Tuesday after the unexpected yield curve policy change by the Bank of Japan (BOJ) shook the markets. Spot gold is trading at $1,814. Gram gold approached a record level of 1,093 TL on Tuesday with 1,092 TL, and closed the trading day at 1,088 TL. Gram gold is finding buyers in the markets at 1,088 TL. Spot gold had risen 1.7 percent on Tuesday following the BOJ’s move that caused the dollar to fall. The precious metal, which is priced in dollars and does not yield interest, traditionally tends to move negatively with dollar and treasury yields. The BOJ surprisingly raised the yield cap on Japan’s 10-year bond to 50 basis points, and two-year bond yields rose two basis points to 0.01 percent, turning positive for the first time since 2015, according to data released by Japan Bond Trading on Wednesday. Market players will be monitoring a range of U.S. economic data this week, including the Fed’s main inflation indicator, which could provide more clues about the path of rate hikes. Experts say market moves could become more severe as the holiday season approaches and liquidity dwindles.