Gold falls as dollar and yields climb
Today, Tuesday, the price of gold declined due to the rise of the dollar and U.S. Treasury bond yields, despite expectations that the likelihood of a Federal Reserve interest rate hike has decreased following data showing a slowdown in the labor market and economic forecasts. Spot gold fell by 0.3% to reach $4,128.69 per ounce, as the continued strength of the dollar increased the cost of the metal. Meanwhile, U.S. Treasury yields hit their highest levels in 24 years. The market still anticipates an 87% chance of a rate increase in December, which diminishes gold’s appeal from an income-generating perspective. However, geopolitical factors and persistent high inflation may support its long-term viability.
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