Gold Rallies As Dollar Pauses, Yields Ease From 24-year Highs
(RTTNews) - Gold prices were sharply higher on Friday as oil prices fell and bond yields steadied, helping ease concerns around inflation and interest rates.
Spot gold surged 1.2 percent to $4,185 an ounce while U.S. gold futures were up 1.3 percent at $4,209.
Markets found some relief from a pullback in French government bond yields, which had previously climbed to multi-decade highs due to budget concerns.
The U.S. dollar took a breather as U.S. Treasury yields finally halted their relentless upward trajectory. The 10-year Treasury yield dropped to 5.22 percent after a 30-year debt auction met with solid demand.
Federal Reserve Governor Christopher Waller indicated on Thursday that further interest rate increases are likely in the coming months, although the timing and pace of increases will depend on incoming data.
St. Louis Fed President Alberto Musalem also said more monetary policy tightening will be required to bring inflation back to target in a timely manner.
Brent crude futures fell more than 1 percent to trade below $103 a barrel in early European trade as U.S. President Donald Trump ruled out attacking Iran before the U.S. midterm elections on November 3, asserting that discussions with Tehran remain production and that record volumes of crude were currently passing through the Strait of Hormuz.
However, subsequent reports indicated that the U.S. had already prepared plans for three days of targeted strikes against Iranian energy infrastructure, drone and missile stockpiles.
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