Gold slips as rising oil prices, Treasury yields dent appeal
GLD•Spot gold fell 0.6% to $4,261.79 per ounce, hitting a one-week low as rising oil prices and Treasury yields weighed on prices. Traders priced a 69% chance of an October rate hike.
1. Prices and pressure
Spot gold fell 0.6% to $4,261.79 per ounce by 1042 GMT, its lowest since September 17. December U.S. gold futures eased 0.5% to $4,296.40. Rising oil prices and U.S. Treasury yields, alongside expectations of further Federal Reserve tightening, pressured gold.
2. Rates and outlook
The 10-year Treasury yield hovered near a level last seen in 2007, increasing the opportunity cost of holding non-yielding bullion. Traders priced a 69% chance of an October rate hike. Intesa Sanpaolo economist Daniela Corsini said precious metals could lack clear direction, with gold potentially trading near an average of $4,200 per ounce for a couple of quarters.
