Gold Tumbles to Two-Week Low Amid Higher Yields and Strong Dollar
Gold prices plummeted to a two-week low on Wednesday, hit by higher US Treasury yields and a stronger dollar. The yellow metal steadied at $4,333.49 per ounce but remains below its 200-day moving average. U.S. gold futures for December delivery fell 0.4% to $4,380.40.
The US dollar's firm stance makes gold more expensive for buyers using other currencies. Meanwhile, US Treasury yields rose amid the escalating Middle East conflict and inflation concerns. Despite its status as an inflation hedge, higher interest rates weigh on gold's appeal due to its lack of yield.
Federal Reserve Governor Michael Barr warned that if inflation doesn't cool quickly, it will be time for the central bank to increase interest rates. Investors await US jobs data, including the ADP employment report and nonfarm payrolls, which are crucial for determining the Fed's next move.