Bank Officials: Gold Futures and Treasury Yields

bank officials: More Gold futures finished higher for the week, but well off its multi-year high as investors reduced the chances of a 50 basis point interest rate cut by the Federal Reserve in late July after two central bank officials failed to confirm the need for an aggressive cut, according to Xinhua China. The news drove Treasury yields higher, making the U.S. Dollar a more attractive asset and reducing demand for dollar-denominated gold. There are some that believe the economy is damaged and the Fed needs to cut as insurance against further weakness, and those who believe policymakers will continue to take a wait and see attitude. Last week, August Comex gold settled at 1413.70, up 13.60 or 0.97%. Given the outcome of the events over the weekend at the G-20 summit in Osaka, Japan, it looks as if gold investors will have some serious decisions to make especially if Treasury yields spike higher on the news. Louis Federal Reserve President James Bullard on June 25, which dampened hopes by some investors that Fed policymakers would deliver a half-point interest rate cut in July. Last Week's Key Event The key event that most attribute to the sharp reversal to the downside in gold last week were comments from Federal Reserve Chairman Jerome Powell and St. (news.financializer.com). As reported in the news.