International Gold Prices Slip Amid Rising US Bond Yields

Gold prices in the international market fell slightly on Tuesday (2 December). After hitting a six-week high in the previous session, rising yields on US Treasury bonds and profit-taking exerted pressure on the precious metal. Investors also remained cautious ahead of key US economic data due later in the week, which will influence the Federal Reserve’s direction on interest rate policy.

On Tuesday, the price of spot gold decreased by 0.3 per cent to 4,218.71 dollars per ounce. US gold futures for December delivery also dropped by 0.6 per cent to 4,250.70 dollars. At the same time, the yield on US 10-year Treasury bonds hovered near a two-week high, reducing investor interest in non-interest-bearing gold.

Tim Waterer, Chief Market Analyst at KCM Trade, commented: “Gold is underperforming today, although the underlying picture remains unchanged. Prospects of US rate cuts could be positive for gold in the future.” He also noted that the market is cautious, as few dovish remarks are expected from Federal Reserve Chair Jerome Powell. The core PCE price index — the Fed’s preferred measure of inflation — is expected to remain moderate when released on Friday. Powell also refrained from commenting on economic conditions or policy during a speech at Stanford University on Monday.

This week, attention will focus on Wednesday’s November ADP employment report and Friday’s delayed September PCE data. According to CME’s FedWatch Tool, market participants currently estimate an 88 per cent probability of an interest rate cut in December.

SPDR Gold Trust reported that its gold holdings increased by 0.44 per cent on Monday, reaching 1,050.01 metric tonnes.

Prices of other precious metals also declined. Silver fell by 1.3 per cent to 57.24 dollars per ounce, platinum dropped by 0.9 per cent to 1,643.10 dollars, and palladium decreased by 0.4 per cent to 1,419.50 dollars per ounce.

In the domestic market, new gold prices were set yesterday, Monday (1 December). The price of 22-carat gold per bhori (11.664 grams) is now 212,145 taka. The price for 21-carat gold stands at 202,499 taka per bhori, 18-carat at 173,572 taka per bhori, and gold under the traditional system at 144,424 taka per bhori.

Source: Reuters

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