Gold Drops More than 2% on US Rate-Hike Bets
Traders priced in a 70% chance of an October rate hike as a firmer dollar and higher Treasury yields pressured bullion, Reuters said.
- International spot gold stabilized near $4,350 an ounce on Wednesday, rebounding after breaching $4,340 earlier. The recovery followed easing oil prices, which mitigated inflation fears and drew investors back into bullion.
- The Federal Reserve raised benchmark rates by 25 basis points to 3.75%-4.00% on September 16, initially pressuring non-yielding assets. Renewed US-Iran hostilities have since injected volatility, as energy supply shocks keep policymakers focused on long-term price stability.
- Justin Lin of Global X ETFs notes gold lacks a 'clear narrative' amid market lulls, while economist Daniela Corsini of Intesa Sanpaolo expects prices to hover near $4,200 per ounce. These diverging forecasts complicate the outlook.
- Elevated 10-year Treasury yields near 20-year highs diminish gold's appeal by raising the opportunity cost of holding non-yielding assets. Ross Maxwell, VT Markets chief strategy officer, said investors focus on the central bank's "higher-for-longer" stance.
- Traders price in a 70% probability of an October rate hike, as 16 of 18 policymakers signal further increases. Future policy paths depend on upcoming personal consumption expenditure and payroll data releases.
259 Articles
259 Articles
Gold Trades Near Seven-Week Low as Rate-Hike Pressure Mounts
Gold edged higher after touching a more than seven-week low on Monday as a selloff of US Treasuries stabilized, even as expectations remained high the Federal Reserve will keep tightening policy to rein in inflation.
While the price of gold broke record after record at the beginning of the year, the price of the precious metal is now well below record levels. Earlier this year, gold peaked at around $5,400 per troy ounce; now, only $4,140 remains. For a long time, the precious metal gleamed as a safe haven, but investors are abandoning gold en masse for government bonds. The culprit? Sharply rising capital market interest rates and increasing panic in the bo…
Precious metal has fallen by more than 10% since August, in parallel with the rise in oil and expectations of higher rates
Gold declines Rs 2,600 to Rs 1.5 lakh/10g; silver tumbles Rs 5,000 to Rs 2.32 lakh a kg
New Delhi, Sep 28 (PTI) Gold prices tumbled Rs 2,600 to Rs 1.5 lakh per 10 grams in the national capital on Monday, tracking a sharp selloff in global markets amid rising crude oil rates and a firm US dollar. The yellow metal of 99.9 per cent purity had closed at Rs 1,52,600 per 10 […]
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