Gold ticks up on easing Treasury yields, but rate outlook weighs
GLD•Data and events
| DATA/EVENTS (GMT) | |
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| 1400 | EU Consumer Confid. Flash Sep |
Gold edges higher as Treasury yields ease
Sept. 22 (Reuters) - Gold prices edged higher on Tuesday as US Treasury yields eased, although expectations of higher interest rates limited gains.
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Spot gold XAU= gained 0.3% at $4,357.31 per ounce, as of 0052 GMT. US gold futures GCcv1 for December delivery were up 0.3% at $4,395.00.
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The benchmark US 10-year yield slipped for a second consecutive session. US/
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Bullion is traditionally viewed as a hedge against inflation and geopolitical risks, but its appeal tends to wane in a high-interest-rate environment as investors favor yield-bearing assets.
Rate outlook and geopolitical tensions weigh on sentiment
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The US central bank raised its policy rate by a quarter of a percentage point last week and flagged more hikes in the coming months.
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The Federal Reserve will likely need to hike rates further to lower inflation resulting from strong demand as well as a commodity price shock that has moved beyond oil, St. Louis Fed President Alberto Musalem said, adding that it would be better for the US central bank to act sooner than wait.
