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Gold slips to around $4,630 as US Treasury yields fall

XAU/USD drops 0.4% after failing to build on an earlier push above $4,700, while WTI oil is down about 3% to near $82.00.

Reported · Written up by our desk · Major Pairs

Gold prices eased in European trading, with XAU/USD down 0.4% to around $4,630 after failing to extend an earlier rally above $4,700, according to FXStreet.

The metal faced weaker demand as a sharp decline in oil pulled down US Treasury yields. FXStreet cited 10-year yields down 0.6% to near 4.67%, with 30-year yields about 0.55% lower to around 5.2%, after WTI was last seen down 3% to near $82.00.

With fears of high inflation expectations moderated by lower oil prices, the rate-hike risk from global central banks eased, which weighed on yields. That backdrop improved the relative appeal of gold, a non-yielding asset.

Looking ahead, FXStreet said investors will focus on US Personal Consumption Expenditures inflation data for July and developments from the Jackson Hole Symposium, while technical signals show XAU/USD holding above the 20-day EMA near $4,387.61 but with RSI around 70.8, suggesting overbought conditions and risk of consolidation.

Latest closeGold $4,432.00 ▲1.6%|WTI crude $82.40 ▲1.4%

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