Gold was steady after an auction of Treasury notes on Tuesday, with markets bracing for an aggressive path of Federal Reserve interest-rate cuts in 2024.
Buyers piled in to sales of US bonds on Tuesday, with the auction for two-year debt priced below its when-issued yield — a sign of greater-than-expected demand. Investors are grabbing prevailing yields before the central bank starts easing.
Swaps markets are pricing in a nearly 80% chance of a cut by March. Both lower yields and interest rates are typically bullish for non-interest bearing assets like bullion.
Bullion is up 13% for the year, on track for its first annual increase in three years, and is trading near a record high.
Gold was 0.1% lower at $2,065.81 an ounce as of 9:03 a.m. in Singapore. The Bloomberg Dollar Spot Index rose 0.1%. Silver was flat and platinum slipped, while palladium rose.
Source: Bloomberg
