Gold Edges Up Amid Oil Rebound, Silver Falls Below $61
Gold prices inched up on Wednesday, rising by 0.13% to $4,186.15 an ounce, while silver fell 0.78% to $60.97, slipping below the $61 level it had briefly reclaimed a day earlier.
The two metals diverged as oil prices reversed course, with WTI crude rising 2.13% to $91.28 a barrel and Brent climbing 0.86% to $103.47.
Gold also gained after softer-than-expected US inflation data weighed on the dollar. The personal consumption expenditures (PCE) price index increased 0.3% month-on-month on a seasonally adjusted basis in August, bringing the annual increase to 3.4%. This marks a turnaround from earlier in the week when falling oil prices had briefly eased some inflation concerns weighing on the metals.
However, yields remain the bigger headwind for bullion this week, with the 30-year US bond yield climbing as high as 5.62% and the 10-year yield holding near 5.25%. Concerns over persistent energy-driven inflation, along with hawkish remarks from Federal Reserve officials, have pushed yields higher.
New York Fed President John Williams said that another rate increase 'late this year' could be appropriate, citing the Middle East conflict and the rapid expansion of artificial intelligence infrastructure as key drivers of elevated inflation. Higher yields typically weigh on gold and silver because neither metal pays interest, making them less attractive relative to interest-bearing assets as borrowing costs climb.