Gold edges lower as firm dollar, elevated yields weigh
GLD•Spot gold fell 0.5% to $4,143.91 an ounce as the dollar edged up and 10-year Treasury yields rose 0.6%. Investors awaited next week’s Federal Reserve decision and US inflation data.
1. Dollar and yields pressure gold
Spot gold fell 0.5% to $4,143.91 per ounce by 11:34 a.m. EDT, while US gold futures for December delivery declined 0.4% to $4,163.30. The dollar edged higher, and 10-year Treasury yields rose 0.6%.
2. Fed decision in focus
Investors are awaiting next week’s Federal Reserve policy decision and Personal Consumption Expenditures inflation data. Traders saw an 82.8% chance the Fed would leave rates unchanged this month and a 90% chance of a rate hike in December. Higher interest rates reduce the appeal of gold, which does not pay interest.
