Gold Edges Higher Amid Declining US Treasury Yields

Gold prices have increased as US Treasury yields decline, despite expectations of further rate hikes. In Singapore on September 22nd, gold prices rose by 0.3% to $4,357.31 per ounce.

The US central bank raised its benchmark interest rate last week and signaled the possibility of more increases in coming months. This move typically makes investors favor yield-bearing assets over gold, which serves as a hedge against inflation and geopolitical risks.

However, with yields on 10-year US Treasury bonds falling for the second consecutive session, gold's appeal has been rekindled. Spot silver rose by 0.7% to $66.48 per ounce, while platinum climbed 0.8% to $1,811.28 and palladium gained 0.7% to $1,309.78.

US gold futures for December delivery also increased by 0.3% to $4,395. The market remains cautious as rate hike expectations continue to influence investor sentiment.