Gold prices spiked in the afternoon of Asian trading hours on Thursday after a dovish U.S Federal Reserve opened the door to further rate cuts, and the 10-year Treasury yield slipped below 2% for the first time since November 2016.
Spot gold prices surged to their highest level since March 2014, Reuters reported. As of 12:42 am ET Thursday, it was 1.33% higher at around $1,378.01 per ounce.
Analysts attributed the spike in gold prices to a weakening dollar and declining Treasury yields on the back of the dovish Fed statement on Wednesday, which opened the door to further rate cuts. Gold futures also saw strong gains to $1,382.10 per ounce. They had earlier soared 3% to $1,397.70 per ounce, according to Reuters.
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