Gold rises more than 1% as dollar eases

The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day. 0927 GMT - The dollar has limited scope to fall as bond markets and risk sentiment remain fragile while the Federal Reserve is expected to raise interest rates again in December, ING's Francesco Pesole says in a note. The dollar has lost some ground as the sharp rise in Treasury yields pauses but there are no signs of broader correction in the currency, he says.

S. " ING expects a slightly stronger dollar in the near term. 535 Monday. com) 0923 GMT - The Bank of England is likely to raise interest rates in November followed by another increase in February, preventing sterling from falling, Commerzbank's Volkmar Baur says in a note.

K. " This supports the case for raising rates given recent stickier-than-anticipated inflation, he says. The market is pricing two rate increases by February so the potential tightening might not have much impact on sterling. However, Commerzbank had previously expected sterling to weaken towards year-end and now expects it to trade sideways versus the euro in coming months.

8445 Wednesday, LSEG data show. S. Treasury yields reversed course and turned slightly higher on Friday, although long-dated yields remained comfortably below the 24-year highs reached earlier in the week, helped by falling oil prices. Eurozone government bond yields slid in early trade, catching up with earlier falls in Treasury yields following Thursday's well-received 30-year Treasury auction.

S. bond auctions," ING's Padhraic Garvey, regional head of research for the Americas, and Benjamin Schroeder, senior rates strategist, said in a note. 608%, according to Tradeweb. 733%, respectively, earlier this week.

452%. French bonds outperformed, reversing some of the recent sharp rise in yields due to budget concerns. 795%. Still, concerns about France remain due to doubts over the government's ability to reduce the budget deficit target to 5% of gross domestic product in 2027 due to a fragmented parliament.

The government's plans to cut expenditure are among a number of factors which have prompted nationwide demonstrations in France. Investors are also wary about France's significant volume of upcoming government bond issuance. France will issue bonds again on Thursday next week. Hefty supply will likely maintain selling pressure on OATs and keep yields high, Citi rates strategist Jamie Searle and Puja Sawant said in a note.

Issuance looks set to be particularly hefty early next year, which might concern investors, they said. 23 billion) in medium- and long-term government bond issuance, net of buybacks, for 2027. This target volume compares with this year's issuance target of 310 billion euros. The outlook for global government bonds overall looks brighter, however, after yields on many major developed-market bonds recently surged to multiyear highs, Benoit Anne, head of market insights at MFS Investment Management, said in a note.

Markets might have gone too far in pricing in interest-rate hikes by the Federal Reserve, leaving scope for some retracement and a potential relief rally in government bonds, he said. Money markets fully price in three rate increases in the next 12 months, LSEG data showed. "This may help cap the upside risks to rates from the standpoint of monetary policy," he said. S.

yields appears to have slowed somewhat, although fiscal challenges persist, he said. com 0738 GMT - Gold gains more than 1% as a softer dollar and lower oil prices support the metal, while market participants reassess the inflation and interest-rate outlook. 70 an ounce. S.

20, making dollar-denominated commodities less expensive for overseas buyers. According to CME's FedWatch tool, traders are pricing in a 19% chance of a rate hike in October and an 83% probability of an increase in December. Investors will next focus on the University of Michigan's preliminary consumer sentiment data due later Friday. K.

-Iran peace talks were progressing well. S. would not attack Iran before the mid-term elections in November, easing concerns about a potential escalation in the Middle East conflict. 4 a barrel.

431%, Tradeweb data show. com) 0716 GMT - The dollar pair is likely to remain rangebound against the yen in the near term, trading largely within the 155-160 yen range, LGT Private Banking Asia says in a note. Risk of intervention in support of the yen should help cap the dollar's gains, the private bank says. Repatriation from European fixed-income holdings by Japanese investors could help the yen, LGT adds.

S. and Japan and continued overseas investment by Japanese investors should limit the scope for the yen's gains, LGT says. 25. S.

Treasury yields which fell significantly after Thursday's strong Treasury auction. French government bonds, which have been intensively sold in recent days amid concerns over next year's budget deficit, lead the rally. 460%, according to Tradeweb. There is no government bond issuance in the eurozone on Friday, but France, Spain and Portugal will release details of their respective auctions next week, although Commerzbank strategists say that Portugal could skip next week's auction window in lieu of a syndication.

com) 0648 GMT - Bitcoin recovers slightly after reaching a two-and-a-half-week low on Thursday as risk appetite improves on hopes for diplomatic progress in the Middle East conflict. S. won't attack Iran before November's midterm elections, citing "productive" discussions. Oil prices ease, sending the dollar lower and providing some support to bitcoin.

9% to $82,468 after hitting as low as $80,391 Thursday, LSEG data show. Thursday's declines were in part due to a stronger dollar and rising Treasury yields as oil prices jumped on concerns about an escalation in the Middle East. S. won't attack Iran before November's midterm elections.

S. is having "productive" discussions with Iran. S. is a net oil exporter while de-escalation hopes dent the dollar as a safe haven.

Meanwhile, Federal Reserve governor Christopher Waller said there was "flexibility" about the pace of possible future interest-rate rises and suggested a pause in October was possible. 535 Monday. S. Treasury yields fell in Asian trade on Friday, extending Thursday's declines following a well-received 30-year Treasury auction.

Long-dated Treasury yields remained comfortably below the 24-year highs reached earlier in the week, with falling oil prices also helping push yields lower. S. bond auctions," ING's Padhraic Garvey, regional head of research for the Americas, and Benjamin Schroeder, senior rates strategist, said in a note. 605%, according to Tradeweb.

733%, respectively, earlier this week. Despite recent setbacks, the outlook for fixed income appears brighter, Benoit Anne, head of market insights at MFS Investment Management, said in a note. "This mainly reflects an improvement in the duration landscape," he said, adding that the market's repricing of the Federal Reserve's policy is now well advanced and may even be overpriced. "This may help cap the upside risks to rates from the standpoint of monetary policy," he said.

S. yields also appears to have slowed somewhat, although fiscal challenges persist, he said. com (MORE TO FOLLOW) Dow Jones Newswires October 09, 2026 05:28 ET (09:28 GMT) Copyright (c) 2026 Dow Jones & Company, Inc. The statements in this document shall not be considered as an objective or independent explanation of the matters.

Please note that this document (a) has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and (b) is not subject to any prohibition on dealing ahead of the dissemination or publication of investment research.