US Yields Limit Bullion Gains as Oil Prices Decline and Rate Hike Bets Soften

Gold and silver prices have stabilised in early Asian trade on Wednesday, following gains from Tuesday. The stabilisation is attributed to a decline in crude oil prices and eased bets of an immediate interest rate hike by the US Federal Reserve.

However, elevated US Treasury yields continue to weigh on market sentiment, with the 30-year yield reaching 5.62%, its highest level since June 2002.

The fall in Brent crude oil prices has eased inflation concerns and supported bullion prices. Oil prices have declined by 2.5% on Tuesday and are currently trading around $103.48 per barrel, a relatively lower price compared to pre-West Asia war levels.

Market participants project a 47% probability of a 25 basis point rate hike by the US Federal Reserve in October, sharply lower than nearly 71% bets a day ago, according to the CME FedWatch tool.