Gold moved from an early loss to an afternoon gain on Oct. 21, changing the market picture ahead of a Federal Reserve decision on U.S. interest rates.
Reuters reported spot gold at $4,137.94 per troy ounce at 2:12 p.m. ET (18:12 UTC), up 0.3%. An earlier Reuters report put it at $4,115.96 at 3:17 a.m. ET (07:17 UTC), down 0.2%.
EconoTimes previously covered gold’s early gains and a rise in the 10-year Treasury par yield. The later gold quote showed that the early decline had reversed.
Brent crude futures were $109.04 a barrel at 10:50 a.m. ET (14:50 UTC), up 0.2%, Reuters reported. The gain had reached as much as $2 earlier in the session. That oil reading preceded the later gold quote by more than three hours.
The U.S. Department of the Treasury reported a 10-year par yield of 5.13% for Oct. 21, compared with 5.12% on Oct. 20. Its daily series uses quotes taken at or near 3:30 p.m. ET. Reuters described a falling benchmark 10-year yield in its afternoon gold report. The reports refer to different times and yield measures. Gold pays no interest, so Treasury yields matter to its appeal relative to interest-bearing assets.
Minutes from the Federal Open Market Committee’s (FOMC) September meeting linked geopolitical developments and energy prices with inflation concerns and Treasury yields. Several participants said higher energy prices were putting a heavier squeeze on the real disposable income of households with low or moderate incomes.
The FOMC raised the target range for the federal funds rate by a quarter percentage point to 3.75% to 4% on Sept. 16 and said inflation remained elevated. Its next meeting is scheduled for Oct. 27-28, with a policy statement due at 2 p.m. ET Oct. 28.
The Bureau of Economic Analysis is scheduled to release September personal income and outlays figures, including personal consumption expenditures price data, at 8:30 a.m. ET Oct. 29.
