Gold Holds Above $4,300 as Yields Rise and Geopolitical Tensions Ease
The gold market closed the week at US$4,321.20/oz, down from its high of US$4,422.10/oz and a testament to the enduring strength of the precious metal.
US Treasury yields rose to their highest level in two decades, reaching around 5.20%, which significantly increased the opportunity cost of holding non-yielding gold.
The Federal Reserve's September rate increase and subsequent hawkish commentary also fueled expectations of further US interest-rate rises, further pressuring gold.
However, despite these headwinds, gold remained above US$4,300/oz, a notable achievement according to Dorex CEO John Kochanski.
Kochanski noted that the short-term contest between high real yields and strategic demand for physical gold remains a key factor in the market's dynamics.