Gold Bounces Back Amid Softer Inflation Data, But Bond Yields Remain a Hurdle

The gold market is showing signs of recovery after a bruising September, but its rebound remains limited by high bond yields and a strong US dollar.

Spot bullion prices rose 0.3% to $4,171.02 an ounce on the day, while ten-year US Treasury yields reached around 5.3%, a level not seen in years.

The softer tone in US inflation data has taken some of the sting out of rate expectations, with the core personal consumption expenditures index rising 3.0% year-on-year in August, undershooting forecasts.

Despite this, the bond market continues to weigh on gold prices, as analysts at OCBC noted that the climb in yields has intensified technical pressure on the metal.