Gold slips as rising oil prices, Treasury yields dent appeal
GLD•Spot gold fell 0.5% to $4,265.89 an ounce, reaching its lowest level since September 17, as rising oil prices and Treasury yields weighed on demand. Traders priced in a 69% chance of an October rate hike.
1. Gold falls to one-week low
Spot gold fell 0.5% to $4,265.89 per ounce by 0852 GMT, after touching its lowest level since September 17. U.S. gold futures for December delivery eased 0.4% to $4,300.20.
2. Yields and oil weigh
U.S. 10-year Treasury yields hovered near a two-decade high, raising the opportunity cost of holding non-yielding gold. Oil prices extended gains after rising 4% in the previous session, while traders priced in a 69% chance of an October rate hike.
3. Other metals mixed
Capital Economics economist Hamad Hussain said elevated oil prices and Treasury yields could limit gold’s scope to rise and could result in further falls. Intesa Sanpaolo economist Daniela Corsini said gold could trade near an average of $4,200 per ounce for a couple of quarters in the firm’s baseline scenario. Silver fell 1.2%, platinum was steady and palladium gained 0.3%.
