Ammon News - Gold prices eased on Tuesday, pressured by ​a firmer US dollar and elevated Treasury yields, although losses were ‌limited by easing expectations of a Federal Reserve interest rate hike this month.

Spot gold slipped 0.3% to $4,127.87 per ounce by 0620 GMT. US gold futures were little changed at $4,155.30.

The dollar ​held firm, making greenback-denominated commodities more expensive for holders of other currencies.

The ​10- and 30-year Treasury yields hit 24-year highs on Monday as ⁠negative sentiment in the bond market prevailed.

"Fundamentals remain supportive of gold in ​the long term. The next big catalyst is likely to stem from geopolitical risk ​in the Middle East," said Kyle Rodda, senior financial market analyst at Capital.com.

"Alternatively, a significant change in US rate expectations could provide an impetus for the next break-out, so every ​piece of price data will be important."

Expectations of a US rate hike in ​October eased after data on Friday showed US job growth slowed more than expected in September ‌and ⁠nonfarm payrolls for the prior two months were revised lower.

Traders are still pricing an 87% probability of an increase in December, according to CME's FedWatch Tool.

Higher interest rates increase the opportunity cost of holding non-yielding gold.

Data showed US services sector activity ​slowed in September, ​while strong domestic ⁠demand stretched supply chains and pushed a measure of prices paid by businesses for inputs to its highest level in ​more than four years, suggesting inflation could remain elevated into ​2027.

Elsewhere, Saudi-backed ⁠Yemeni government forces staged a lightning advance to retake the coast around the Bab el-Mandeb Strait up to the city of Mocha, the government said, pushing the Iran-backed ⁠Houthis out ​of most of the areas they seized last ​month.

Among other metals, spot silver fell 0.7% to $60.64, platinum also lost 0.7% to $1,709.75 and palladium eased ​0.7% to $1,164.24.


Reuters