Gold Rebounds as Dollar and US Yields Weaken

Gold prices rebounded more than 1% on Thursday (Oct. 15), ending a three-session losing streak. Spot gold traded around US$4,153.42 per troy ounce, while US gold futures for December delivery settled 1.5% higher at US$4,170.10 per troy ounce.

The recovery was supported by a weaker US dollar and a decline in Treasury yields. The dollar fell around 0.5%, while the 10-year US Treasury yield dropped to its lowest level in three weeks, improving the appeal of non-yielding gold.

Although recent US CPI and PPI data showed that inflationary pressures remain elevated, expectations for an October Federal Reserve rate hike have eased. Market pricing for a rate increase this month fell to around 29% after several Fed officials signaled that the central bank may not need to tighten policy immediately.

Safe-haven demand also supported gold amid continued volatility in equity markets and persistent geopolitical tensions. Investors are now waiting for remarks from Fed Chair Kevin Warsh for further clues on the interest-rate outlook ahead of the central bank’s late-October policy meeting.(mrv)

Source : Newsmaker.id