Gold slides to two-month low as robust dollar, yields add pressure
GLD•Spot gold fell 1.3% to $4,107.88 an ounce, its lowest since August 5, as the dollar rose 0.5% and Treasury yields remained at an over two-decade high. Silver fell 2.8%, platinum 3.5% and palladium 4.2%.
1. Dollar and yields weigh
Gold declined to a two-month low as a strong US dollar and Treasury yields pressured the metal. The dollar index rose 0.5%, while 10-year Treasury yields were at an over two-decade high. Higher interest rates diminish the attractiveness of non-yielding gold.
2. Markets await Fed minutes
Investors awaited the minutes of the Federal Reserve’s September meeting, due at 2:00 p.m. EDT. Markets were largely expecting rates to remain on hold later in October, while pricing in an 84% chance of a December increase. Kansas City Fed President Jeff Schmid said curbing inflation may require further rate hikes, and San Francisco Fed President Mary Daly said the policy path would depend on whether inflationary pressures continue.
3. Other metals decline
Spot gold fell 1.3% to $4,107.88 an ounce, and December US gold futures lost 1.3% to $4,133.30. Spot silver eased 2.8% to $59.96, platinum fell 3.5% to $1,641.45, and palladium lost 4.2% to $1,123.23. China’s central bank extended its gold-buying streak to a 23rd consecutive month in September.
