Rising Oil Prices Push Gold to Seven-Week Low

Gold prices are near a seven-week low due to rising oil prices and US Treasury yields.

The recent sell-off in gold is attributed to higher energy costs, which have increased concerns about inflation, while rising bond yields make investors more likely to expect additional interest rate increases from the Federal Reserve.

Cleveland Federal Reserve President Beth Hammack stated that several factors are behind the rise in longer-term Treasury yields, including expectations of stronger economic growth and concerns about US government debt.

Gold prices fell 7% in September after the Fed's first interest rate increase since 2023, with markets now pricing in a 70% probability of another rate hike in October.