Strong Dollar and Bond Yields Push Gold Prices Down
As the strengthening dollar and rising bond yields in global markets cause a decline in gold prices, the Fed's interest rate policy is being closely monitored.
Under pressure from a strong dollar and rising US Treasury bond yields, gold declined on Tuesday. Expectations regarding the US Federal Reserve's interest rate policy continue to dictate the market direction.
Market Changes
Gold recorded a decline on Tuesday under the influence of a strong dollar and rising US Treasury bond yields.
Fed Expectations
The weakening of expectations regarding an interest rate hike by the US Federal Reserve this month limited the drop in gold prices.
Spot and Futures Transactions
Spot gold fell 0.3% to $4,128.69 per ounce, while US gold futures remained flat at $4,156.
Employment and Interest Rates
Data released on Friday showed that employment growth in the US slowed more than expected in September, weakening expectations for an October rate hike, though investors are pricing in an 87% probability of a rate hike in December.
Other Developments and Metals
Meanwhile, Yemeni government forces launched an advance to retake the coastal area around the Bab el-Mandeb Strait up to the city of Mocha. Among other precious metals, silver, platinum, and palladium also declined.