WASHINGTON (dpa-AFX) - Gold futures extended gains on Tuesday albeit at a slower pace amidst the burden of surging bond yields and a firm dollar. Gold futures edged up 0.05 percent in the day's trade versus gains of 0.34 percent recorded on Monday and 0.07 percent registered on Friday.
Prices of the yellow metal continued to be pressured by skyrocketing U.S. bond yields that spotlighted the high opportunity cost of holding the non-interest yielding yellow metal. Ten-year U.S. bond yields touched 4.365 percent, the highest since November 2007, earlier in the trade. Fears of the Fed keeping interest rates higher for longer, the high supply of bonds from the U.S. treasury and anxiety ahead of the upcoming Jackson Hole Summit contributed to the spurt in bond yields.
Rate hike worries lifted the Dollar higher causing the Dollar Index which measures the U.S. dollar's strength against a basket of 6 currencies to rise to 103.44, from 103.30 a day earlier.
The CME FedWatch tool currently shows a probability of 15.5 percent for a rate hike of 25 basis points in the review due on September 20, versus 14 percent a day earlier. The probability for a quarter-point rate hike in November is however higher at 39.9 percent, rising from 38 percent a day earlier.
Gold Futures for December settlement has added 0.05 percent to trade at $1,924.05. The day's trading range has been between $1,922.25 and $1,933.05.
Spot Gold added 0.01 percent to trade at $1,894.99 per troy ounce. The day's trading range has been between $1,893.92 and $1,904.49.
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