Gold inches lower as firmer US dollar, higher yields weigh
Spot gold slips 0.3% to US$4,128.83 per ounce by 0400 GMT
Gold dipped slightly by 0.3% on Tuesday, October 6, reaching $4,128.83 per ounce by 4:00 AM GMT. The decline was attributed to a stronger US dollar and rising Treasury yields, although the losses were curtailed by reduced expectations of a Federal Reserve interest rate hike in October. US gold futures remained stable at $4,155.90.
The US dollar proved resilient, making commodities priced in dollars more costly for holders of foreign currencies. The yields on 10- and 30-year Treasury notes hit 24-year peaks on Monday due to mounting doubts in the bond market. Analyst Kyle Rodda from Capital.com noted that gold's long-term fundamentals remain favorable, with geopolitical tensions in the Middle East potentially serving as the next key trigger.
However, an anticipated change in US interest rate expectations could also prompt the next significant price movement.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 5 other outlets
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- Gold inches lower as firmer dollar, higher yields weigh brecorder.com
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- Gold Steadies as Stronger Dollar and Yields Weigh on Rate Path bloomberg.com
