Gold extended its decline Tuesday after a Federal Reserve official signaled one more interest-rate hike may be needed this year, though further tightening is not expected in 2027. Bullion traded near $4,155 an ounce, down 0.8% over the prior two sessions. Fed New York President John Williams stated another rate increase is appropriate before year-end.
US Treasury yields edged lower after his remarks, supporting gold, which typically performs well in a lower rate environment as it does not pay interest. Swaps traders are pricing in a low chance of a rise at this month's policy meeting but see roughly a 90% chance of an increase in December. Spot gold dipped 0.1% to $4,157.37 an ounce at 8:05 a.m. Singapore time, while silver was 0.2% lower at $59.04.
Platinum fell 0.4% and palladium was little changed. The Bloomberg Dollar Spot Index was flat after slipping 0.2% in the previous session.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing