Gold Edges Higher As Oil Prices And Bond Yields Dip
(RTTNews) - Gold prices were modestly higher on Tuesday as falling oil prices and lower bond yields helped ease concerns around inflation and interest rates.
Spot gold edged up 0.30 percent to $4,152.68 an ounce while U.S. gold futures were up 0.6 percent at $4,179.55.
Oil prices were sharply lower, with Brent crude prices falling nearly 2 percent to trade below $99 a barrel on signs of resilient Middle Eastern crude exports and the G7's announcement of a 100-million-barrel coordinated stock release.
Media reports suggest that Middle East crude exports are recovering toward pre-war levels despite continued risks to shipping.
Euro zone bond yields fell sharply, helping reduce the spread between French and German 10-year yields.
The 10-year U.S. Treasury yield dropped 3 basis points to 5.280 percent, after having risen to 5.349 percent on Monday, the highest since 2002 amid rising inflation expectations.
Overnight data showed the U.S. services sector experienced a slowdown in growth during September, but cost pressures reached their highest level in over four years.
After U.S. job growth slowed more than expected in September, markets now see about a 20 percent chance of another Fed rate hike this month, down from roughly 70 percent a week earlier, according to CME FedWatch tool.
The release of the ADP Employment Change 4-week average figures later in the day as well as the minutes from the Fed's September policy meeting, due on Wednesday, will be closely watched for clues on how policymakers view inflation and the softer labor market.
Investors also look forward to the November 3 midterm elections that could determine control of Congress.
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FTSE 100 Extends Recent Gains
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Indian Shares Extend Gains For Second Day As Oil Prices Retreat
Euro Rises Against Majors
Oil Prices Slide As Middle East Oil Exports Recover
