Gold hits 1-week lows on elevated US dollar, yields

Gold slipped to one-week lows on Wednesday, falling further after posting its biggest intra-day decline in a month in the last session, as U.S. Treasury yields and the dollar advanced on expectations that interest rates are likely to remain high.

FUNDAMENTALS

* Spot gold was subdued at $1,924.41 per ounce by 0058 GMT, after posting its biggest one-day loss since Aug. 1 on Tuesday. U.S. gold futures fell 0.1% to $1,949.80.

* The U.S. dollar rose to a near six-month high against a basket of currencies in the last session, while benchmark 10-year bond yields reached their highest level in over a week, dampening appetite for bullion.

* Federal Reserve Governor Christopher Waller said the latest round of economic data was giving the U.S. central bank space to see if it needs to raise interest rates again.

* Higher U.S. interest rates and Treasury bond yields raise the opportunity cost of holding gold, which does not earn any interest.
* Global business activity largely slowed further last month as services firms struggled in the face of weak demand as rising prices and borrowing costs made indebted consumer rein in spending, a raft of surveys showed on Tuesday. * China’s exports likely contracted at a slower pace in August, a Reuters poll showed, highlighting that manufacturers remain under pressure after outbound shipments recorded their worst performance since February 2020 last month.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.1%.

* Elsewhere, spot silver eased 0.1% to $23.49 per ounce, platinum dipped 0.3% to $923.34 and palladium was up 0.1% to $1,212.85.

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This article was originally published by Indiatimes.com. Read the original article here.