Gold Price Declines Weighed by US Yields, Strong US Dollar
Gold prices hit another record high during Monday’s North American session, yet it paused its advance amid elevated US Treasury bond yields and a strong US Dollar. Tensions in the Middle East and uncertainty around the presidential election in the United States (US) increased flows toward safe-haven assets during the last five trading days.
Market sentiment shifted negatively amid a close race in the US election. Reuters revealed that Vice President Kamala Harris leads former President Donald Trump 45% to 42% in the popular vote. However, the winner will be determined by the state-by-state results of the Electoral College.
“Polls have shown Harris and Trump are neck and neck in those battleground states, with many results within the margins of error,” via Reuters.
In the meantime, US Treasury bond yields soared over ten basis points higher, with the 10-year T-note yielding 4.192%. Consequently, the US Dollar Index (DXY), which tracks the buck’s value against a basket of six currencies, has risen 0.50%, hitting a new two-month peak at 104.01.
Hostilities in the Middle East continued as Israel revealed that a projectile from Lebanon hit an open area in central Israel. Meanwhile, Iran’s envoy to the United Nations said that Biden's remarks in Berlin on Israel’s plan to attack the country are “inflammatory.”
Source : FXStreet
