Gold braces for volatility amid recovery in bond yields, higher oil prices
Gold price (XAU/USD) flattens at around $4,140 in the Asian trade on Tuesday after a slightly weak opening performance.
Gold prices remained stable around $4,140 after a weak start in Asian trading on Tuesday. The metal has been trading within a range between $4,063.55 and $4,227.53 for nearly three weeks, with support coming from a recovery in U.S. bond demand. However, the outlook of gold appears to be changing as US Treasury yields show signs of recovery, potentially making growth a more attractive option for investors compared to traditional assets.
US hyperscalers, including Meta, Microsoft, Amazon, and Google, are set to report their Q3 earnings soon, which could further impact Treasury yields. Meanwhile, oil prices have surged by nearly 15% over the past two weeks, currently trading slightly above $98.45, due to concerns over energy supply risks in the Middle East. The Federal Reserve is expected to maintain interest rates at their current level in the coming months, while analysts at Deutsche Bank warn of a potential flight to safety in fixed income markets due to mounting AI-related growth concerns.
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Also reported by 2 other outlets
- Gold declines as bond yields stay elevated despite oil drop businesstimes.com.sg
- Gold stalls as high Oil prices lift US Treasury yields fxstreet.com
