After the sharp drop in the stock market on Tuesday morning, we see the opposite movement. The price of gold, on the other hand, is trading slightly weaker. Yesterday a troy ounce of gold was worth $ 1,760 on the spot market, which corresponds to € 1501 (-0.15%). Silver traded at $ 22.31 an ounce and € 19.03, respectively (+ 0.4%). Again, the euro / dollar rate remained practically unchanged in comparison with the previous day.
The Hong Kong Stock Exchange also recovered slightly from the previous day's losses. Due to two public holidays, trading in mainland China will only resume on Thursday (23 September). It will be interesting to see how prices there respond to payment problems at construction giant Evergrande.
How did bond yields develop? The yield on 10-year US government bonds was 1.33% yesterday. A week ago, it was 1.34%. On the contrary, interest rates on some European securities rose significantly again in percentage terms.
Today, Wednesday night, the Fed will announce the results of its monetary policy meeting. This event could shake up the markets once again. Of course, this also applies to bond yields, which are linked to interest rate and inflation expectations. Both have an impact on the value of the yellow precious metal.
If government bonds with good credit ratings carry higher interest rates, their attractiveness to defensive asset-oriented institutional investors increases. On the other hand, gold does not bring interest income, which means that it is not of interest to them as an investment asset. However, this is only one of many aspects that play a role in the development of gold demand and its value.