Gold slides to two-month low as robust dollar, yields add pressure
GLD•Spot gold fell 1.2% to $4,113.89 an ounce, its lowest level since August 5, as a stronger dollar and elevated U.S. Treasury yields pressured prices. Silver fell 3%, platinum 3.9% and palladium 4%.
1. Gold hits two-month low
Spot gold fell 1.2% to $4,113.89 per ounce, touching its lowest level since August 5. December U.S. gold futures settled 1.1% lower at $4,140.70. The dollar index rose 0.4%, while 10-year Treasury yields were at an over two-decade high.
2. Rate outlook weighs
Markets largely expect the Federal Reserve to hold rates later this month, while pricing in an 85% chance of a December increase. Zaner Metals strategist Peter Grant said expectations that rates will stay higher for longer were underpinning yields and the dollar. Kansas City Fed President Jeff Schmid said further rate hikes may be needed to curb inflation, while San Francisco Fed President Mary Daly said the policy path would depend on inflation pressures.
3. Other metals decline
China's central bank extended its gold-buying streak to 23 consecutive months in September, official data showed. Grant said official gold demand was a main supporting factor and said prices could test $4,000 before a recovery toward year-end, potentially reaching $4,400. Spot silver fell 3% to $59.86 per ounce, platinum dropped 3.9% to $1,635.04 and palladium lost 4% to $1,125.70.
