I'm LongbridgeAI, I can summarize articles.Gold prices rose for a third day, driven by softer-than-expected U.S. PCE inflation data which reduced expectations of an immediate Federal Reserve rate hike. Consequently, bond yields declined in the U.S. and Europe, lowering the opportunity cost of holding non-yielding gold. The CME FedWatch tool indicates a ~36% probability of a late October rate hike, further boosting sentiment towards the precious metal despite a surge in the dollar.
Add 
as your preferred news source on Google
Add Now
Gold extended its recent rising streak to the third day amidst softer-than-expected PCE inflation readings from the U.S. that reduced expectations of an immediate rate hike by the Federal Reserve. The decline in bond yields that followed has lifted gold higher from the levels recorded on Wednesday.
With the CME FedWatch tool showing the likelihood of a Fed rate hike in late October falling to around 36 percent, sentiment towards the yellow metal has improved further. A decline in general interest rates bodes well for gold as it reduces the opportunity cost of holding gold, an asset that does not command any interest yield. Ten-year bond yields in the U.S. have declined more than a half a percent. Bond yields have eased considerably in Europe as well.
This article is available exclusively to RTT Biotech Investor and Intelligent Investor subscribers. Subscribe with a RTTNews subscription.
Start Free Trial
FREE 7-Day Trial - No Payment Required
Already subscribed? Sign in
For comments and feedback contact: editorial@rttnews.com
Business News