Gold prices slipped on Thursday, pressured by higher US Treasury yields, while markets assessed comments from Federal Reserve Chairman Kevin Warsh on tackling inflation after the central bank left its interest rates unchanged this week. <\/p>\n
Spot gold was down 0.5% at $4,045.59 per ounce, as of 0714 GMT, after rising as much \u200cas 2% in \u200cthe previous session. US gold futures for \u200cAugust \u2060delivery gained 0.2% \u2060to $4,043.70. <\/p>\n
Yields on the benchmark 10-year US Treasury note climbed, increasing the opportunity cost of holding bullion. <\/p>\n
“Yields are a byproduct of the rate expectations, and if market expects that inflation fears will translate into higher rates, yields will be higher,” and this is pressuring gold, ANZ analyst Soni Kumari said. <\/p>\n
A \u2060divided Federal Reserve left interest rates unchanged \u200con Wednesday while Warsh reaffirmed the \u200ccentral bank’s commitment to bringing inflation under control, leaving markets \u200cuncertain about its next policy move. <\/p>\n
While gold is seen as \u200can inflation hedge, it loses its appeal as a non-yielding asset in a high-interest-rate environment. <\/p>\n
Markets are still pricing in a 67% chance of a rate hike in September, although this is down \u200cfrom about 81% before the policy decision, according to CME Group’s FedWatch tool. <\/p>\n
Investors are also \u2060awaiting \u2060June’s US Personal Consumption Expenditure (PCE) data, due at 1230 GMT. <\/p>\n
On the geopolitical front, the US carried out fresh strikes in Iran on Wednesday, the US military said, further intensifying a five-month-old war that was already expanding beyond its main fronts to embroil additional countries in the region. <\/p>\n
“The yellow metal is likely to drift back toward $3,900 per ounce as oil remains under pressure to move even higher through the summer,” analysts at TD Securities said in a note. <\/p>\n
Spot silver fell 0.3% to $57.49 per ounce and platinum fell 1% to $1,595.38. Palladium rose 0.7% to $1,255.67. <\/p>\n","protected":false},"excerpt":{"rendered":"Gold prices slipped on Thursday, pressured by higher US Treasury yields, while markets assessed comments from Federal Reserve…\n","protected":false},"author":2,"featured_media":566737,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[114,85,46],"class_list":["post-566736","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-business","tag-il","tag-israel"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/566736","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=566736"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/566736\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/566737"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=566736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=566736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=566736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}