Gold prices rise slightly amid falling yield on US government bonds

Gold prices on January 12 morning rose slightly amid a decrease in the yield of US government bonds after the speech of Chair of the Federal Reserve Jerome Powell, Report informs referring to the auction data.

The price of February gold futures on the New York Comex stock exchange rose 0.06%, or $1.1, to $1,819.6 per troy ounce. March silver futures fell 0.04% to $22.802 an ounce.

A slight increase in the price of the precious metal was facilitated by a decrease in the yield on ten-year US Treasury Notes: they dropped to 1.732% from the previous close of 1.746%.

“US Treasury yields fell slightly on Tuesday after Federal Reserve Chairman Jerome Powell signaled that the central bank is likely to begin normalizing policy this year,” the Wall Street Journal reports.

Jerome Powell allowed a gradual increase in the base interest rate, if inflation in the country remains above the forecasted level.