Commodity News
HeadLine : Gold prices dip on rising dollar, bond yields
Date : Sep 28 2021
Gold prices eased on Tuesday, hurt by a stronger dollar and rising U.S. Treasury yields, while investors awaited more cues from Federal Reserve officials on the central bank’s monetary policy shift. Spot gold fell 0.1% to $1,748.01 per ounce, while U.S. gold futures were down 0.3% to $1,747.50. The dollar index was up 0.1%, making gold more expensive for holders of other currencies. Overnight, benchmark 10-year U.S. Treasury yields rose to their highest level in three months. U.S. Federal Reserve officials on Monday tied reduction in the Fed’s monthly bond purchases to continued job growth, with a September employment report now a potential trigger for the central bank’s bond “taper.” Fed Chair Jerome Powell is due to testify later in the day before Congress on the central bank’s policy response to the pandemic. In prepared remarks, Powell said the U.S. central bank would move against unchecked inflation if needed. While gold is often considered a hedge against higher inflation, a rate hike would increase the opportunity cost of holding gold, which pays no interest. China’s central bank vowed to protect consumers exposed to the housing market on Monday and injected more cash into the banking system as the Shenzhen government began investigating the wealth management unit of ailing developer Evergrande.

Source: Reuters
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