Gold hits one-week lows on elevated US dollar, yields
GOLD slipped to one-week lows on Wednesday (Sep 6), falling further after posting its biggest intra-day decline in a month in the last session, as US Treasury yields and the dollar advanced on expectations that interest rates are likely to remain high.
Spot gold was subdued at US$1,924.41 per ounce by 0058 GMT, after posting its biggest one-day loss since Aug 1 on Tuesday. US gold futures fell 0.1 per cent to US$1,949.80.
The US dollar rose to a near six-month high against a basket of currencies in the last session, while benchmark 10-year bond yields reached their highest level in over a week, dampening appetite for bullion.
Federal Reserve governor Christopher Waller said the latest round of economic data was giving the US central bank space to see if it needs to raise interest rates again.
Higher US interest rates and Treasury bond yields raise the opportunity cost of holding gold, which does not earn any interest.
Global business activity largely slowed further last month as services firms struggled in the face of weak demand as rising prices and borrowing costs made indebted consumer rein in spending, a raft of surveys showed on Tuesday.
China’s exports likely contracted at a slower pace in August, a Reuters poll showed, highlighting that manufacturers remain under pressure after outbound shipments recorded their worst performance since February 2020 last month.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.1 per cent.
Elsewhere, spot silver eased 0.1 per cent to US$23.49 per ounce, platinum dipped 0.3 per cent to US$923.34 and palladium was up 0.1 per cent to US$1,212.85. REUTERS
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