Gold slides to two-month low as robust dollar, yields add pressure
GLD•Gold fell 1.6% to $4,096.13 an ounce, its lowest since August 5, pressured by a stronger dollar and elevated Treasury yields. Silver, platinum and palladium also declined as investors awaited minutes from the Federal Reserve’s September meeting.
1. Gold hits two-month low
Spot gold fell 1.6% to $4,096.13 per ounce by 9:20 a.m. EDT, touching its lowest level since August 5. U.S. gold futures for December delivery also declined 1.6%, to $4,121.70.
2. Dollar and yields rise
The dollar index climbed 0.7%, while 10-year Treasury yields were at an over-two-decade high. Markets were pricing in an 84% chance of a Fed rate hike in December, while largely expecting rates to remain on hold later this month. Higher interest rates reduce the appeal of non-yielding gold.
3. Other metals decline
Silver fell 2.9% to $59.89 per ounce, platinum dropped 4.8% to $1,620.38, and palladium lost 4.2% to $1,122.75. China’s central bank extended its gold-buying streak to 23 consecutive months in September, official data showed.
