Gold gave back an early Monday gain as the U.S. 10-year Treasury par yield rose to 5.15%, after an earlier Reuters snapshot showed gold higher.
Reuters’ 12:55 a.m. EDT update put spot gold at $4,182.30 an ounce, up 0.4%. FXStreet’s article text later quoted XAU/USD at $4,140, down 0.54%. EconoTimes had earlier covered gold’s move below $4,150 before that later quote. The readings capture different points in the trading day.
U.S. Treasury daily par-yield data listed the 10-year rate at 5.15% on Oct. 19, compared with 5.09% on Oct. 16. That is a six-basis-point increase, or 0.06 percentage point. The series reflects indicative market bids sampled at about 3:30 p.m. ET. FXStreet attributed late pressure on gold partly to higher yields and a firmer dollar. The outlet said rising yields can increase the relative appeal of interest-bearing assets because bullion pays no interest.
The World Gold Council also cited yields and dollar strength as partial factors in gold’s 8.5% decline in U.S.-dollar terms during September.
The Bureau of Labor Statistics (BLS) said the seasonally adjusted Producer Price Index for final demand rose 1.3% in September from August, its largest monthly increase since March 2022. Over the 12 months through September, final-demand prices rose 6.3%. Final-demand energy prices increased 10.8%, accounting for more than 80% of the rise in final-demand goods prices.
Minutes from the Federal Reserve’s September meeting say policymakers raised the federal funds target range by 0.25 percentage point to 3.75% to 4%. The projections released with that decision showed 12 of 18 policymakers placing the appropriate year-end rate midpoint at 4.125%, one quarter point above the current range’s midpoint; those individual assessments do not commit the Fed to another increase. The next policy meeting is scheduled for Oct. 27-28, with a decision due at 2 p.m. ET on Oct. 28.
