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Gold slips as a firmer dollar and higher Treasury yields weigh
XAU/USD was around $4,119 after falling back from an intraday high near $4,143, while the US Dollar Index hovered around 102.4 and Treasuries stayed near multi year highs.
Gold prices pulled back on Thursday, reversing a modest recovery as a stronger US dollar and rising Treasury yields limited upside, leaving the metal in a bearish consolidation phase near two month lows, according to FXStreet.
At the time of writing, XAU/USD traded around $4,119, down from an intraday high near $4,143. The US Dollar Index, or DXY, was near 102.40, close to an 18 month peak of 102.53.
FXStreet also cited elevated Treasury yields as being supported by oil’s rebound and ongoing inflation concerns. The report linked oil gains to reports that the Pentagon ordered preparations for possible renewed strikes on Iran, with Axios saying action could occur before November’s US midterm elections.
The outlet further pointed to a hawkish Fed backdrop, noting that the September meeting minutes released Wednesday showed unanimous support for a 25 basis point hike to 3.75%. It added that resilient US growth, government debt and fiscal concerns are contributing to yield pressure.
Latest closeGold $4,150.40 ▼0.3%|Dollar index 102.19 ▲0.3%