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Gold
Source: Newsmaker.id
Gold prices softened during Tuesday's trading (Sept. 15) as a strengthening US dollar and high Treasury yields once again weighed on the precious metal. Spot gold fell approximately 0.1% to US$4,293.29 per troy ounce, having touched its lowest level since August 7 the previous day. Meanwhile, US gold futures closed 0.4% lower at US$4,332.80.
Pressure on gold intensified after oil prices surged by more than US$3 per barrel. Supply concerns mounted following reports that oil loading operations at the port of Yanbu, Saudi Arabia, had been halted and Libya had suspended operations at three oil fields. These developments have once again heightened the risk of global inflation.
Markets are now awaiting the Federal Reserve's decision on Wednesday. Investors anticipate a 25-basis-point rate hike, bringing the target range to 3.75%–4.00%. However, the primary focus lies not merely on the rate hike decision itself, but on whether Fed Chair Kevin Warsh will signal further tightening beyond September.
The yield on the 10-year US Treasury note climbed to its highest level since 2007, while the US dollar strengthened. This combination pressured gold by raising the opportunity cost of holding a non-interest-bearing asset. Although gold is typically viewed as a hedge against inflation and geopolitical instability, current high yields have enhanced the appeal of Treasuries.
Other precious metals saw mixed performance. Silver rose about 0.3% to US$63.41 per troy ounce, platinum gained 0.7% to US$1,772.32, and palladium edged up 0.1% to US$1,294.14.
Newsmaker Analysis: Expectations for a Fed rate hike appear largely priced in; consequently, gold's next move will depend heavily on the Fed's commentary following the interest rate decision. If Warsh confirms that interest rates will remain high or opens up opportunities for further increases, gold is still at risk of being pressured. Conversely, a more cautious tone could open up rebound space.
Source: Newsmaker.id