Gold inches lower as firmer dollar, higher yields weigh

Business Recorder reported that gold eased on Tuesday as a firmer US dollar and rising Treasury yields weighed on the metal. Spot gold was down 0.3 per cent at $4,128.69 an ounce as of 0155 GMT, while US futures were broadly flat at $4,156.00. Losses were contained because expectations of a Federal Reserve rate increase this month had eased.

The dollar stayed firm, lifting the cost of dollar-priced metals for buyers holding other currencies. Yields on 10-year and 30-year Treasuries touched 24-year peaks on Monday, while a prolonged slump in the bond market hurt sentiment. Data showing slower US job growth in September, along with downward revisions to payrolls for the two prior months, reduced expectations of an October rate increase.

Kyle Rodda said gold's long-term fundamentals remained supportive, and identified geopolitical risk in the Middle East as the next major catalyst. Silver was quoted 0.6 per cent weaker at $60.67 an ounce, while platinum declined 0.7 per cent to $1,710.08 and palladium shed 0.2 per cent to $1,170.15.