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Gold slips from mid-May highs, fails near $4,700
Gold broke back from a fresh post-May 14 high after long-dated Treasury yields rebounded, while the dollar stayed supported by ongoing Fed rate uncertainty.
Gold prices edged lower after touching a fresh high since May 14 in Tuesday’s Asian session, but failed to hold above the $4,700 level, according to FXStreet.
The retreat came as an initial drop in long-dated US Treasury yields tied to the Treasury Department’s expanded buyback plan unwound. FXStreet said 10-year and 30-year yields climbed back above levels seen before the buyback announcement.
FXStreet added that the US dollar did not fully reverse higher even as yields rebounded, partly because market expectations shifted toward a Fed hold at the September 15 to 16 FOMC meeting. Traders are still pricing roughly a 75.0% chance of a rate hike by year-end.
Looking ahead, FXStreet said gold remains sensitive to upcoming US data, including the Personal Consumption Expenditures Price Index on Wednesday, and to potential interest rate cues from Fed Chair Kevin Warsh’s Jackson Hole address on Friday. Meanwhile, geopolitical risk tied to US actions targeting Iran and Iran warnings about oil exports through the Strait of Hormuz has kept safe-haven demand and risk premiums in play, influencing gold’s upside.
Latest closeGold $4,432.00 ▲1.6%