(Bloomberg) -- Gold held a four-day gain after strong demand for Treasuries signaled investors are confident the Federal Reserve will loosen monetary policy next year.
US bonds rallied Wednesday, dragging down yields to levels not seen in months, on growing expectations that inflation will keep decelerating to a level low enough to coax policymakers to soon begin slashing interest rates.
Swaps markets are pricing in a nearly 90% chance of a cut by March. Lower yields and rates are typically bullish for non-interest bearing assets like bullion.
- The precious metal is up 14% for the year, on track for its first annual increase in three years. Bullion hit a record $2,135.39 an ounce in early December
- Gold edged 0.1% higher to $2,079.74 an ounce as of 8:14 a.m. in Singapore. The Bloomberg Dollar Spot Index was flat, after declining 0.4% in the previous session. Silver rose, platinum was little changed, while palladium fell
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