Gold at one-week low as higher oil, hawkish Fed weigh
GLD•Gold fell 0.5% to $4,265.50 an ounce after reaching its lowest since September 16, as higher oil prices and hawkish Federal Reserve rhetoric supported expectations for higher interest rates. The dollar reached a two-month high and 10-year Treasury yields were near a two-decade high.
1. Gold prices ease
Spot gold fell 0.5% to $4,265.50 an ounce by 14:00 ET, after hitting its lowest level since September 16. December U.S. gold futures settled 0.5% lower at $4,298.
2. Oil and rates weigh
Oil prices rose about 2% after a Houthi missile attack on Saudi Arabia revived supply-disruption fears. The article said higher energy prices can add to inflation concerns, while hawkish Fed comments have reinforced expectations for further rate increases; traders priced a 69% chance of an October hike.
3. Other metals decline
A two-month high in the dollar made gold more expensive for overseas buyers, while 10-year Treasury yields hovered near a two-decade high. Silver fell 1.3% to $63.60 an ounce, platinum eased 0.1% to $1,748.46, and palladium gained 0.7% to $1,268.24.
