WASHINGTON (dpa-AFX) - Gold prices eased on Friday as the dollar held gains on growing market expectations of U.S. tapering by year-end and rate hikes in 2022.
The downside remained capped as the yield on 10-year Treasury notes fell to 1.494 percent from 1.528 percent in the previous session.
Spot gold slipped 0.1 percent to $1,755.40 per ounce, while U.S. gold futures were down 0.1 percent at $1,755.35.
Investors' risk appetite weakened as growing inflation worries and uncertainty about the impact of Evergrande's debt crisis weighed on high-yielding assets.
Investors fear that supply chain disruptions across the globe could keep inflation higher for a longer period than thought.
Evergrande missed two deadlines to pay more than $180 million in interest to foreign investors who hold its dollar-denominated bonds.
The U.S. government averted a shutdown by passing a stopgap spending bill, but it risks a potential default amid an impasse over raising the debt ceiling.
In her Congressional testimony, Treasury Secretary Janet Yellen has warned of 'catastrophic economic consequences' if the debt ceiling is not raised by October 18th.
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