Gold subdued near seven-month lows on lofty US dollar, yields
GOLD prices were flat on Wednesday (Oct 4) near seven-month lows hit in the previous session, as a surge in US dollar and bond yields buoyed by strong jobs data meant that there was room for a further monetary policy tightening.
Spot gold was flat at US$1,823.59 per ounce by 0117 GMT, while US gold futures eased 0.1 per cent to US$1,839.20 per ounce.
Prices fell for a seventh consecutive session on Tuesday to touch their lowest levels since March, as the US dollar strengthened on data showing US job openings unexpectedly increased in August.
The yen sat on the stronger side of 150 per dollar on Wednesday, after an unexpected surge in the previous session stoked speculation that Japanese authorities could have intervened to support the currency.
Federal Reserve officials see rising yields on long-term US Treasury debt as evidence their tight-money policies are working, but for now at least say they are not triggering alarm bells for the economy.
Benchmark US 10-year bond yields were at 16-year highs, diminishing demand for non-interest-paying bullion.
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US Treasury Secretary Janet Yellen said on Tuesday she was very optimistic about the outlook for the economy, adding that inflation was coming down in the short term and the labour market was “extremely strong”.
Top global automakers on Tuesday reported a rise in US new vehicle sales for the third quarter, buoyed by resilient demand for latest models and improved supplies.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2 per cent to 873.35 tonnes on Tuesday.
Spot silver was down 0.1 per cent to US$21.14 per ounce, having slipped to its lowest since mid-March in the last session.
Platinum slid 0.8 per cent to US$864.93 to touch its lowest in a year. Palladium dropped 1.2 per cent to US$1,174.70 and hovered near five-year lows hit on Tuesday. REUTERS
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