Gold Decline Continues: Ninth Consecutive Session Sees Dollar and Bond Yields Surge

gold price update

Gold kept falling for the ninth time in a row as the dollar and bond yields increased. This happened after the Federal Reserve’s latest meeting minutes were released, showing that more interest-rate hikes could be on their way.

For December delivery, the value of gold closed lower by US$13.10, reaching US$1,915.20 per ounce. This marks the lowest level since March 10.

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This decline was triggered by the rise in the dollar, following the disclosure of minutes from the Federal Open Market Committee. These minutes indicated that policymakers were concerned about inflation and might consider raising rates again. The ICE dollar index climbed by 0.11 points, reaching 103.54, the highest level since mid-June.

According to Saxo Bank, “The FOMC minutes hinted at the possibility of more rate hikes. Increased yields and a two-month peak in the USD reduced the demand for the precious metal among investors. Additionally, unexpectedly positive economic data has also lowered the demand for safe-haven assets.”

Bond yields also saw an increase. The two-year note yielded 4.987%, marking a rise of 2.1 basis points. Similarly, the yield on the 10-year note went up by 6.3 basis points, reaching 4.32%.


Read more Gold Rebounds as Dollar Weakens Despite Fed’s Hint at Rate Hikes

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