Gold Prices Steady Amid Eased Rate Hike Expectations
Gold prices steadied on Friday after surging more than 2% in the previous session, as Federal Reserve Governor Christopher Waller's comments eased expectations of a September interest-rate rise. Spot gold was up 0.1% at US$4,478.17 an ounce by 8:22 am Singapore time.
The metal had touched its highest level since August 28 on Thursday, when it jumped 2.3% to US$4,488.54 an ounce. Traders now see a 54% probability that the Fed will raise rates at its September 15-16 meeting, down from about 62% before Waller's comments.
Lower yields and a weaker dollar also supported gold prices. Falling US Treasury yields reduced the opportunity cost of holding gold, while a weaker dollar made dollar-denominated bullion less expensive for buyers using other currencies.