Gold Falls as Dollar and Yields Rise
Gold prices declined due to the strength of the US dollar and rising Treasury bond yields, despite softer expectations for a US interest rate hike in October. Spot gold fell by 0.39% to $4,122.49 per ounce, while futures contracts decreased by 0.07% to $4,153.60. The dollar continues to be strong, increasing the cost of dollar-denominated goods, while yields on 10- and 30-year Treasury bonds reached their highest levels in 24 years, putting pressure on investor sentiment. Markets also anticipate that geopolitical threats in the Middle East will be the next trigger for higher gold prices, with an 87% probability of a US rate hike in December amid slowing jobs growth and persistent inflation through 2027. Additionally, prices for other precious metals, such as silver, platinum, and palladium, also declined.
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