- BIST10011,798+3.22%
- USD49.55+0.21%
- EUR55.57-0.09%
- GOLD4,136.70-0.14%
- INTEREST37.00%-1.00
- BITCOIN83,035+0.11%
- October 21, 202612°
- BIST10011,798+3.22%
- USD49.55+0.21%
- EUR55.57-0.09%
- GOLD4,136.70-0.14%
- INTEREST37.00%-1.00
- BITCOIN83,035+0.11%
- October 21, 202612°
Gold prices fall to 7-month low on US bond yields and Iran tensions
Gold prices fell to their lowest since November, pressured by rising US bond yields and fading hopes for Iran-US peace. As prices retreated to $3,964, markets are pricing in a nearly 67% chance of a September rate hike.
Gold prices continued to decline on Wednesday, pressured by rising US Treasury yields. Spot gold fell 1.1% to $3,964.8 per ounce, after hitting a seven-month low in the previous session.
Gold, which fell to $3,942.99 on Tuesday, had reached its lowest level since November. US gold futures for August delivery dropped 1.5% to $3,978.2.
Inflation and rate expectations weigh on prices
Gold posted its steepest quarterly drop since 2013 and suffered its fourth consecutive monthly loss in June. Tensions in the Middle East fueled inflation concerns and strengthened expectations of US rate hikes, adding pressure on the precious metal.
Ilya Spivak, head of global macro at TISTI LAIF, said, "The pressure from rising bond yields is pulling gold lower. The US dollar also edged higher at the same time, which kind of confirms what's happening."
Markets focus on September
The rise in the dollar index made gold more expensive for holders of other currencies, while the 10-year US Treasury yield continued its upward trend. According to CME Group's FedWatch tool, investors are pricing in a nearly 67% chance of a rate hike in September.
Investors are awaiting the ADP employment data for June, due later today, and the nonfarm payrolls report on Thursday for further clues on the Federal Reserve's rate path.
Iran-US tensions lift oil
Iran's announcement that it would not meet with US envoys who arrived in the region after the renewed flare-up of hostilities weakened the prospect of diplomatic progress and pushed oil prices higher.
Other precious metals
- Silver: down 1.4% in the spot market to $57.75 per ounce
- Platinum: fell 0.6% to $1,542, its lowest since November
- Palladium: lost 0.4% to $1,199.34
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