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Gold holds modest gains as US Treasury yields ease

Gold was up 0.55% to about $4,133, while the 10-year Treasury yield eased toward 5.27% after topping 5.36% on Wednesday.

Reported · Written up by our desk · Precious Metals

Gold is holding modest gains, supported by a retreat in US Treasury yields that has tempered the US dollar’s strength, according to FXStreet. Even so, the outlet notes gold lacks bullish conviction and remains in a bearish consolidation phase near two-month lows.

At the time of writing, XAU/USD was trading around $4,133, up 0.55% on the day. FXStreet also points to the benchmark 10-year US Treasury yield easing toward 5.27% after reaching 5.36% on Wednesday, its highest level since 2002.

FXStreet adds that Treasury yields remain elevated near multi-year highs, with higher oil prices helping fuel inflation concerns. The outlet also links the move in oil to reports that the Pentagon has ordered preparations for possible renewed strikes on Iran, with Axios citing the possibility of action before November’s US midterm elections.

The US Dollar Index, which tracks the greenback against a basket of six major currencies, was around 102.14, below Monday’s peak of 102.53, FXStreet said. It also cites a hawkish Fed outlook as a factor weighing on the metal.

Latest closeGold $4,150.40 ▼0.3%|Dollar index 102.19 ▲0.3%

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