Gold Recovers from Near Six-Week Low as US Treasury Bond Yields Weaken USD
Gold prices are recovering from their near six-week low as softer US Treasury bond yields weigh on the US Dollar. The precious metal has been building on its intraday ascent through the first half of the European session on Thursday.
A modest pullback in US Treasury bond yields is prompting some US Dollar profit-taking, which is offering support to gold. However, the Federal Reserve's hawkish outlook and escalating Middle East tensions are limiting deeper losses for the safe-haven Greenback and capping the non-yielding bullion.
The Fed raised interest rates for the first time since 2023 at its September policy meeting on Wednesday, with a unanimous vote. The decision was in line with the broader consensus, but it's accompanied by a more hawkish outlook. Fed Chair Kevin Warsh said that inflation is too high and has been for too long, while underscoring the importance of stabilizing consumer prices to grow the US economy.