Gold futures rallied Wednesday, rebounding from early losses as the U.S. dollar pulled back from 20-year highs and rekindled some of the metal's safe-haven appeal.
December Comex gold +1.9% to $1,667.50/oz, after futures previously hit their lowest since April 2020, while December silver +2.6% to $18.82/oz.
Barrick Gold (NYSE:GOLD) +5.2%, bouncing off its lowest closing price since June 2019; other precious metals movers include (NEM) +4.4%, (AUY) +9.7%, (KGC) +8%, (IAG) +9.1%, (GFI) +7.9%, (AU) +7%, (HMY) +5.2%, (SBSW) +6.9%, (AEM) +7.5%, (FNV) +4.3%, (NGD) +11.9%, (RGLD) +5.9%, (EXK) +10.8%, (AG) +9.1%, (CDE) +13.4%, (HL) +7.5%, (PAAS) +6.3%, (WPM) +5.9%.
The dollar retreated after reaching a fresh two-decade high, making bullion less expensive for overseas buyers, while U.S. Treasury yields eased.
Gold's bounce "highlights just how almighty the U.S. currency has become this month," according to BullionVault's Adrian Ash, also noting the sharp retreat in bond yields, "driven by the Bank of England suddenly joining a raft of Asian central banks in intervening in the markets."
Citing the Fed's determination to bring down inflation through tighter monetary policy, UBS analyst Giovanni Staunovo has long expected gold to fall to $1,600/oz by year-end.