Forex
Home›Forex›Major Pairs›Gold holds near $4,335 as surging yields weigh on price
Gold holds near $4,335 as surging yields weigh on price
The metal steadied after an early-June pullback, while Treasury yields hit decade highs and markets shifted toward a near 65% chance of a Fed hold in September.
Gold prices were steady around $4,335 after retreating from an early-June peak near $4,450 during early Asian trading on Wednesday, according to FXStreet.
FXStreet links the recent softness to a rise in US and global borrowing costs, with Treasury yields surging to their highest levels in decades. Thirty-year US bond yields reached their highest since 2007, 10-year borrowing costs moved to a three-decade high amid expectations the Bank of Japan could raise rates as early as September, and Germany's 10-year Bund yield rose to a level not seen since 2011.
The outlet also cites inflation uncertainty tied to US-Iran tensions and the Strait of Hormuz, alongside ongoing concerns about energy prices. FXStreet notes that BNY strategists say investors appear to favor gold as explicit inflation protection, even as higher yields remain a near-term headwind.
On the policy front, FXStreet says softer US inflation data has led investors to scale back expectations of a Fed hike, with markets pricing a September quarter-point move that has flipped to a near-65% chance of a hold. Technical analysis in the report adds that gold remains under a bearish near-term bias while trading below the 100-day moving average.
Latest closeGold $4,432.00 ▲1.6%