Gold remained under pressure, trading near multi-week lows as inflation risks stayed in focus and interest rate hikes remained possible. Middle East tensions continued to affect energy prices, reinforcing inflation concerns and supporting higher global bond yields. US long-term Treasury yields rose to multi-year highs, with the 30-year yield at levels last seen in 2007 and the 10-year benchmark also moving higher. European and Japanese yields similarly approached highs as markets priced further monetary tightening. Central banks were expected to raise rates in coming months. Investors planned to watch geopolitical developments and FOMC minutes for short-term volatility, while central bank purchases could provide structural support for gold.
"Gold remained under pressure on Wednesday, hovering near multi-week lows, amid a continued focus on inflation risks and the prospect of interest rate hikes."
"Prolonged tensions in the Middle East continue to drive energy prices and inflation concerns, which could continue to push global bond yields higher, creating a challenging environment for the precious metal."
"US long-term Treasury yields have climbed to multi-year highs, with the 30-year yield reaching levels not seen since 2007, while the 10-year benchmark has also moved higher."
"Looking ahead, investors will closely monitor geopolitical developments and the release of the FOMC minutes, both of which could generate short-term volatility. However, gold could find structural support from ongoing central bank purchases, which could help limit downside risk."
Read at London Business News | Londonlovesbusiness.com
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