Gold prices end $47 higher as US dollar, bond yields slump

Gold prices closed higher today, Dec. 14, cashing in on the decline in the US dollar and Treasury bond yields, amid growing expectations that the US monetary tightening cycle will soon end.

Bullion for February delivery rose by about 2.40%, or $47.60, to finish at $2,044.90 per ounce, after touching $2,062.90 an ounce earlier in the session.

On the other hand, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, plummeted by 0.85% to 101.99 points at 09:38 pm Makkah time.

The yellow metal's gains today came in tandem with a slump in the 10-year US Treasury bond yields, which plunged below the 4% level for the first time since August.

Yesterday, the Federal Reserve held interest rates steady at its final meeting of the year. However, it expects to cut rates three times — 25 basis points at a time — over the next year.