Gold extended its rout to the lowest level in almost seven months amid hawkish signals on rates from the Federal Reserve and after a tumble in Treasuries intensified, pushing up yields.
The plunge in bullion is relentless with the metal heading for a seventh straight day of declines, the longest losing streak since 2018. Benchmark US yields jumped to the highest levels in 16 years on Monday, extending an uptrend that began in May.
Fed policymakers remain resolute on their higher-for-longer stance, a message that’s sinking in across markets — resulting in selling of gold. Traders raised bets on a November hike to a roughly one-in-three chance, up from 25% priced on Friday. Higher rates are typically negative for the non-yielding metal.
A gauge of the dollar strengthened against most of its Group of 10 peers, after enjoying its best quarter in a year. Bullion usually moves in the opposite direction to the greenback.
Spot gold fell 0.4% to $1,820.45 an ounce as of 12:20 p.m. in Singapore, after closing 1.1% lower on Monday. Platinum fell 0.9% to the lowest in a year. Silver dropped to the lowest in almost seven months, while palladium declined for a third day.
Source : Bloomberg
