Gold Prices Plummet to Two-Week Low Amid Rising US Treasury Yields and Stronger Dollar
Gold prices hit a two-week low on Wednesday due to higher US Treasury yields and a stronger dollar, as investors awaited US jobs data for clues on interest-rate paths.
The precious metal steadied at $4,333.49 per ounce by 0017 GMT after hitting its lowest since August 14 earlier in the day. U.S. gold futures for December delivery fell 0.4% to $4,380.40.
The US dollar remained firm, making gold more expensive for buyers using other currencies. US Treasury yields increased amid the escalating Middle East conflict and concerns over rising inflation.
Although gold is often seen as an inflation hedge, higher interest rates reduce its appeal since it offers no yield. The ADP employment report was released later in the day, with nonfarm payrolls data due on Friday.