Gold Bounces as Dollar Pulls Back Amid Oil Market Volatility
The price of gold is trying to rebound as the US dollar pulls back from recent highs. The oil markets have also seen a pullback, which has contributed to this move in gold.
Treasury yields are down after bond traders focused on developments in the oil markets. The yield of 2-year Treasuries pulled back towards 4.89%, while the 10-year Treasury yield settled near 5.20%. However, the 30-year Treasury yield moved higher and climbed above 5.50%, indicating that the sell-off in bond markets is not over yet.
The probability of a rate hike at the next Fed meeting in October has decreased to 64.2%, according to the FedWatch Tool. The market still expects a 25-bps rate hike in October and December, which could be bearish for gold since it pays no interest.