US bond yields and strong dollar put renewed pressure on gold
Gold is under selling pressure after the Fed raised rates. Ten-year Treasury yields near 5.25% and a dollar index above 101 outweigh geopolitical support for the metal.
Gold Market
Gold is under selling pressure after the Fed raised rates. Ten-year Treasury yields near 5.25% and a dollar index above 101 outweigh geopolitical support for the metal.
Gold price gained momentum to near $4,160 in early Asian trade on Monday after US Nonfarm Payrolls missed expectations, reducing the likelihood of a Fed rate hike this month. Rising US-Iran tensions also provided support.
The world’s 50 most valuable mining companies shed $264 billion in September – the second-worst month on record – as gold’s summer rally unravelled and lithium stocks nearly disappeared from the ranking.
Gold fell 11.7% from late August to late September, a typical autumn pullback. The selloff was driven by surging Fed rate hike expectations and mean reversion after a strong rally.
Gold has returned to the red zone in Asia after failing to reclaim $4,200, trading near $4,172 as markets await US jobs data that could determine the next directional move.
Gold rose to near $4,180 in early Asian trading on Friday as US Treasury yields eased from multi-decade highs. Focus now turns to the US September nonfarm payrolls report, which could influence the Fed's rate path.
Gold fell 0.6% to $4,154.78 an ounce, heading for a second weekly decline as a stronger US dollar and elevated Treasury yields pressured bullion.
Gold futures on the MCX gained 0.99% to ₹1,50,511 per 10 grams on Thursday, supported by fresh positions and firm spot demand. International prices also moved higher.
Gold spot retreated from an intraday high of $4,219 to close at $4,157 as elevated real yields continued to cap upside, according to UOB Global Economics & Markets Research.