Commodities
Gold slips for a third day as rising yields and hike bets weigh
Bullion slipped below $4,150 an ounce as Treasury yields climbed and traders priced a December Fed hike.
HedgeWeekly News Desk ·
Gold fell for a third straight session on Tuesday. Spot gold slipped below $4,150 an ounce and was trading around $4,135 early in the Asian session, according to FXStreet.
Higher bond yields are the main drag on the non-yielding metal. The US 10-year Treasury yield rose more than 4 basis points to about 5.14% overnight, and the 2-year yield climbed to around 4.78%. A selloff in French government bonds after weekend unrest added to the upward pressure on global yields.
Rate expectations are also working against gold. Futures pricing shows the Fed widely expected to hold at its October 28 meeting after raising rates in September for the first time since 2023, but markets see a high probability of another hike in December. Elevated oil prices have fed inflation worries, and Bank of Japan Governor Kazuo Ueda said underlying inflation in Japan is close to the 2% target, a sign that tightening pressure is spreading beyond the US.