Gold Inches Higher as Softer US Inflation Dims October Fed Hike Bets
Softer US inflation data eased October rate-hike bets, but 10-year Treasury yields near 5.30% and a firmer dollar kept gains in check.
- Gold prices started October higher, with spot gold rising 0.5% to $4,175.19 per ounce after softer-than-expected US inflation data tempered forecasts for a Federal Reserve rate hike this month.
- August Personal Consumption Expenditures core inflation rose 0.2% month-over-month, falling below economists' expectations and reducing the probability of an October Federal Reserve rate hike to about 34 per cent from earlier levels.
- Elevated 10-year Treasury yields, which climbed to about 5.30% last Wednesday, continue limiting gains for gold, while a firmer US dollar makes dollar-priced metals costlier for foreign currency holders.
- Geopolitical developments in the Middle East remain crucial for gold, Christopher Tahir, senior market strategist at Exness, said, as continued tensions could keep energy prices and yields elevated.
- Investors are now awaiting the US nonfarm payrolls report scheduled for release on Friday to determine the Federal Reserve's policy path, with market participants closely watching rate expectations.
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Gold prices remain under pressure ahead of US employment data. The data is expected to give new signals that could affect the Fed's expectations for interest rate policy and the short-term direction of gold. Will the price of the coin go down or rise? Here are all the details...
The price per ounce of cash gold was little changed today, at $4,184 and 45 cents. Cash gold is down more than 2 percent over the current week and is on track to record its second weekly decline.
Gold steadies as softer US inflation offsets pressure from rising Treasury yields
London: Gold prices were little changed on Thursday as a softer-than-expected US inflation report reduced expectations of a near-term Federal Reserve interest rate increase, although higher Treasury yields and a stronger US dollar limited gains.Spot gold was steady at $4,155.60 an ounce by 0830 GMT, while US gold futures for December delivery were unchanged at $4,185.50. The precious metal lost more than 6 per cent in September.The benchmark 10-…
Gold reduced its gains and approached stability as the dollar climbed to the highest level in three months, although the US interest-raising stakes declined after lower than expected inflation data, while markets were waiting for jobs to determine the course.
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