Gold Prices Climb as Oil Softens and Fed Rate Speculation Intensifies
Gold prices rise as oil costs dip and Treasury yields ease. Investors monitor Federal Reserve policy signals amid ongoing inflation and market volatility.
POLICY WIRE — Bengaluru, India — Gold prices saw a modest uptick on Monday, buoyed by a decline in oil costs as market participants scrutinized the likelihood of future interest rate hikes from the Federal Reserve.
Spot gold climbed 0.3% to reach $4,175.60 per ounce by 0259 GMT. Simultaneously, US gold futures for December delivery experienced a 0.4% increase, settling at $4,196.40.
The precious metal found support as the dollar rally paused, rendering bullion more accessible for international buyers. Additionally, the benchmark 10-year Treasury yield retreated for the second consecutive session, further enhancing the appeal of non-yielding assets.
Market sentiment remains cautious regarding potential monetary tightening. Analysts noted that while current conditions favor gold, the possibility of future rate hikes remains a risk, particularly as inflation concerns persist due to supply disruption fears in the Middle East.
Reporting by Policy-Wire (PW)
