Gold prices and downward trend in spot gold continue in global markets
Spot gold declined for its fourth consecutive session amid Fed rate hike expectations and rising bond yields.
Following the increase in global bond yields and oil prices, gold fell below $4,300 per ounce amid expectations of a potential Federal Reserve rate hike, recording a decline for its fourth consecutive session.
Global Markets and the Decline in Gold
Following a sharp increase in global bond yields and oil prices as investors weighed the likelihood of a Fed rate hike, gold dropped below approximately $4,300 per ounce, declining for the fourth straight session to reach its lowest level in over three weeks.
Bond Yields and Inflationary Pressures
As global bond yields rose amid mounting inflationary pressures and near-term rate hike expectations, US Treasury yields reversed a decline that had been triggered by US Treasury Secretary Scott Bessent's announcement of an expanded buyback program.
Fed's Hawkish Stance and Expectations
Federal Reserve Chair Kevin Warsh's pledge to fight inflation further reinforced the hawkish outlook, and markets are now pricing in about a 70% probability of a Fed rate hike this month. Attention has now turned to today's ADP employment report and Friday's non-farm payrolls data for further clues regarding the Fed's policy path.
Geopolitical Risks and Oil Prices
Meanwhile, oil prices continued their upward trend due to escalating hostilities between the US and Iran, further amplifying inflation risks.
Current Spot Gold Levels
Spot gold started the day at $4,333. During the day, it saw a low of $4,282 and a high of $4,335. It is currently trading at $4,303.
Current Gram Gold Levels
Gram gold started the day at 6,719 Turkish Lira. During the day, it saw a low of 6,651 liras and a high of 6,730 liras. It is currently finding buyers at 6,682 liras.