- BIST10011,722-2.89%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,186.70+0.40%
- INTEREST37.00%-1.00
- BITCOIN81,432-0.09%
- October 17, 202617°
- BIST10011,722-2.89%
- USD49.45+0.05%
- EUR55.62+0.37%
- GOLD4,186.70+0.40%
- INTEREST37.00%-1.00
- BITCOIN81,432-0.09%
- October 17, 202617°
Gold falls 1.2% to $4,125 as US Treasury yields rise
Spot gold fell 1.2% to $4,125 per ounce as of 11 a.m. Wednesday. Rising US dollar index and US Treasury yields increased pressure on gold.
Spot gold fell 1.2% to $4,125 per ounce as of 11 a.m. Wednesday. Rising US dollar index and US Treasury yields drove the decline in the precious metals market.
The US dollar index rose 0.4%. The increase made gold, which is priced in dollars, more expensive for investors using other currencies.
Fed minutes and interest-rate expectations in focus
Market participants are monitoring the minutes of the US Federal Reserve’s September meeting for the extent to which policymakers supported continuing to raise interest rates.
Expectations indicate that the Federal Reserve may leave interest rates unchanged at its next meeting. The possibility of an interest-rate hike in December remains on the agenda.
Rising interest rates and Treasury yields generally reduce gold’s appeal to investors because the precious metal does not generate interest income.
Central banks continue buying gold
Despite the decline in gold prices, geopolitical tensions, inflation concerns, rising public debt and central-bank gold purchases remain among the factors supporting the market.
The People’s Bank of China also continued buying gold in September, marking its 23rd consecutive month of purchases.
Silver, platinum and palladium also decline
Other precious metals also moved lower. Spot silver fell 2.2% to $60.36, platinum declined 3% to about $1,650.45, and palladium dropped 2.7% to $1,140.89.
As oil prices and US Treasury yields rise in global markets, concerns continue over the impact of energy costs on inflation and US monetary policy. Military tensions in the Middle East and the US-Iran war are also among the factors increasing volatility in the markets.
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