Gold Prices Stabilize Near $4,300 Amid Oil Disruptions

Gold prices have stabilized near $4,300 after falling over 1% in the previous session due to worsening oil disruptions and strengthening expectations of a Federal Reserve rate hike this week.

The US dollar index rose to 99.60 as higher oil prices, Treasury yields, and a stronger dollar put pressure on bullion. However, longer-term investor demand remains supportive, with OCBC raising its precious-metals forecasts to reflect improving investment participation and structural demand.

The US Treasury yield briefly touched 5% for the first time in almost three years, reflecting concerns over inflation as well as rising government and corporate borrowing needs.