Gold Slumps Amid Stronger Dollar and Hike Bets
Gold prices suffered losses for the third consecutive week, falling to their lowest level in three weeks as the US dollar strengthened and investors bet on a potential Federal Reserve rate hike. The precious metal ticked up slightly on Wednesday, but only after a weaker dollar helped it gain ground.
The US Treasury yield curve stabilized, with the 10-year yield last down 1.6 basis points to 4.780%, and the 2-year down 2.3 basis points to 4.371%. The ADP data showed that US private employers added 38k jobs in August, lower than the estimated figure of 47k.
Rising yields have driven up borrowing costs, weighing on consumers and businesses, while higher rate environments tend to boost the dollar. Oil prices rose, but at a slower pace than Tuesday's surge, with November Brent crude last up 0.6% to $95.26 a barrel.