Gold Holds Above $4,150 as Easing Fed Tightening Fears Stem Losses
Summary
- International gold prices have stabilized after recent declines as expectations for additional Federal Reserve rate hikes next year weakened.
- Easing concern over prolonged U.S. monetary tightening has limited further losses in spot gold, keeping prices above the $4,150 level.
- A slight decline in U.S. Treasury yields has boosted the appeal of non-interest-bearing gold, helping support prices.
Forecast Trend Report by Period
Gold steadied after two days of declines as expectations faded for additional Federal Reserve rate hikes next year.
Bloomberg reported on Oct. 13 that spot gold traded at $4,157.37 an ounce as of 8:05 a.m. Singapore time, down 0.1% from the previous session. Bullion fell 0.8% over the prior two trading days, but further losses were limited as concerns about prolonged U.S. monetary tightening eased.
The shift in sentiment followed comments from John Williams, president of the Federal Reserve Bank of New York. Williams maintained that one additional rate increase this year would be appropriate, while saying further tightening would not be needed in 2027.
That helped nudge U.S. Treasury yields lower, supporting gold prices. Because gold does not pay interest, it typically becomes more attractive when yields fall.
