Gold stays below $4,350 as rate-hike odds rise
Gold held below $4,350 an ounce on Wednesday after tumbling nearly 3% in the prior session. The move tracked higher global bond yields and oil prices as investors assessed the likelihood of imminent Fed rate hikes.
Gold held below $4,350 an ounce on Wednesday after tumbling nearly 3% in the previous session, as investors assessed the prospects of Federal Reserve interest rate hikes following a sharp rise in global bond yields and oil prices.
Global bond yields climbed amid mounting inflationary pressures and growing expectations of imminent rate hikes, with US Treasury yields reversing the decline triggered by Secretary Scott Bessent’s announcement of an expanded buyback program.
Fed Chair Kevin Warsh’s pledge to combat inflation further reinforced the hawkish outlook, with markets now pricing in around a 70% chance of a Fed rate hike this month.
Attention now turns to the ADP employment report due Wednesday and Friday’s nonfarm payrolls for further clues on the Fed’s policy path.
Meanwhile, oil prices extended gains amid escalating hostilities between the US and Iran, further heightening inflation risks.