NEW YORK: Gold extended its retreat to a fifth day on Wednesday as yields climbed and bets for higher-for-longer US interest rates and global growth concerns continued to drive safe-haven flows into the dollar.
Spot gold fell 0.4% to $1,917.99 per ounce by 12:45 p.m. EDT (1645 GMT), its lowest since Aug. 29. US gold futures were down 0.5% to $1,943.40.
The dollar held near a six-month peak, while benchmark 10-year Treasury yields were near Aug. 23 highs.
A rise in the safe-haven rival dollar makes gold more expensive for overseas investors, while higher yields decrease non-yielding bullion’s appeal.
Gold’s move is not dramatic, it’s a wait-and-watch to see “what the FOMC is going to do and also if the global economy is going to slip into recession or not,” said Chris Gaffney, president at EverBank World Markets.
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