Gold prices touch levels not seen in almost 6 years

Gold prices gained for a second day in a row on Friday, touching levels not seen in almost 6 years.

Gold prices surged a day earlier, after the U.S. Federal Reserve opened the door for a possible rate cut in the future, sending the yield on the benchmark 10-year Treasury note below 2% — a key psychological level — for the first time since November 2016.

A factor driving gold prices higher is that lower interest rates in the US decreased the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.

The US dollar weakened while 10-year US yields dropped below 2% for the first time since November 2016 as expectations grow that major central banks will ease policy.

Another reason is that weak global growth forecast amid growing trade war tensions also stoked investors towards gold.

Via CNBC