Gold futures rise as Treasury yields slip
Gold futures recovered after a move lower tied to the Fed’s rate hike, as Treasury yields eased and the dollar weakened; oil prices extended their pullback.
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Gold futures recovered after a move lower tied to the Fed’s rate hike, as Treasury yields eased and the dollar weakened; oil prices extended their pullback.
The U.S. 10-year Treasury yield broke above 5% on Tuesday, and crude oil stormed past $105 a barrel, a combination that left every major U.S. equity index in the red at midday. President Donald Trump said on Truth Social that “the world’s diesel price rise is mostly caused by the Russia/Ukraine War, not Iran.” West Tex
U.S. stocks fell on Thursday after August producer price data and surging oil prices stoked worries the Federal Reserve will hike rates next week, while rising Treasury yields made stocks less attractive. Heavyweight chipmakers also lost ground.
U.S. producer prices rose 5.4% year over year in August, above the 5.3% expected and up from 4.8% in July. The monthly PPI also accelerated to 0.4% from 0.1%, versus 0.3% consensus, while core PPI rose 0.2% on the month and 4.6% year over year.
Micron and SanDisk rose even after a stronger-than-expected U.S. August jobs report lifted Treasury yields and pushed September Fed hike odds above 50% on Polymarket.
Gold and silver stayed under pressure in early trade Wednesday, with rising US Treasury yields, a stronger dollar and growing Fed rate-hike expectations weighing on non-yielding assets. COMEX gold futures fell 0.98% to $4,353.10/oz.