Commodities
Gold Slumps as Fed Hike Bets Rise Amid Strong US Data
Gold prices have dropped to a one-week low as investors bet on further interest rate hikes from the Federal Reserve. The XAU/USD pair is trading at around $4,250, down nearly 0.85% on the day.
The 10-year US Treasury yield has reached its highest level since 2007, rising to 5.16%, while the two-year yield is near a peak of 4.94%, its highest since 2004.
Strong PMI data and lower Initial Jobless Claims have strengthened expectations that the Fed could raise interest rates again in October, with the CME FedWatch Tool placing the probability at around 75%.