- BIST10012,151-0.94%
- USD49.220.00%
- EUR55.21+0.28%
- GOLD4,195.90-0.48%
- INTEREST37.00%-1.00
- BITCOIN82,706-1.16%
- October 13, 202619°
- BIST10012,151-0.94%
- USD49.220.00%
- EUR55.21+0.28%
- GOLD4,195.90-0.48%
- INTEREST37.00%-1.00
- BITCOIN82,706-1.16%
- October 13, 202619°
Gold prices fall to 7-month low on US bond yields and Iran tensions
Gold prices fell to their lowest since November as rising US Treasury yields and fading Iran-US peace hopes weighed. While it retreated to the $964 level, markets are pricing in a nearly 67% chance of a September rate hike.
Gold prices continued to fall on Wednesday, pressured by rising US Treasury yields. Spot gold traded at $3,964.8 per ounce, down 1.1%, after touching a seven-month low in the previous session.
Gold had fallen to $3,942.99 on Tuesday, its lowest since November. US gold futures for August delivery lost 1.5% to $3,978.2.
Inflation and rate expectations weigh on prices
Gold recorded its sharpest quarterly decline since 2013 and marked its fourth straight monthly loss in June. Middle East tensions stoked inflation fears and strengthened US rate hike expectations, intensifying pressure on the precious metal.
Ilya Spivak, Head of Global Macroeconomics at TİSTİ LAIF, said: "The pressure from rising bond yields is dragging gold lower. The US dollar also ticked up slightly, which sort of confirms the move."
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 looking to the ADP June employment report due today and the nonfarm payrolls data on Thursday for more clues on the Federal Reserve's rate trajectory.
Iran-US tensions lift oil
Iran's statement that it will not meet with US envoys who arrived in the region after the renewed clashes dimmed hopes for diplomatic progress and drove oil prices up.
Latest on other precious metals
- Silver: down 1.4% in spot trading to $57.75 per ounce
- Platinum: fell 0.6% to $1,542, the lowest since November
- Palladium: lost 0.4% to trade at $1,199.34
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