11th January 2018

Gold prices rose on Wednesday, hitting a four-month high of $1328/ounce at one point before rolling back a good portion of their gains to finish only about $6/ounce higher at $1319. Prices pushed higher early in the US session on reports that Chinese officials were contemplating slowing or halting purchases of US treasuries. This prompted a surge in the yen, with the Japanese currency shooting to a high of 111.28 one point for its biggest advance in seven weeks. The Euro and sterling saw a much more measured advance (ending the day at 1.1950 and $1.35 respectively). The Chinese news also led to a spike in the US 10-year treasury rate; yields jumped to a 10-month high of 2.6% and were the likely reason that gold’s advance got rolled back as the day wore on.