Gold steadied around $4,180 an ounce as easing US Treasury yields and Federal Reserve signals reduced bets on further rate hikes. The metal gained 0.5% on Thursday but remains about 2% lower for the week. US 10-year yields retreated from a 24-year high, boosting demand for safe-haven assets amid concerns over France's fiscal outlook.
Fed Vice Chair Philip Jefferson suggested more data is needed before deciding on additional tightening, pushing October hike odds down to 27% from 70% earlier in the week. Oil prices rose on Middle East tensions, with the Pentagon considering deploying an additional aircraft carrier and 10,000 personnel to the Persian Gulf. Senior Market Analyst Hebe Chen at Vantage Global Markets noted that while softer inflation and fading rate-hike expectations provide support, elevated Treasury yields and a strong dollar continue to cap gold’s upside.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing