Gold approaches two-week low on rising yields, Fed hike bets

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeNewsEconomyGold approaches two-week low on rising yields, Fed hike betsThe metal’s weakness 'is a follow-through from Warsh’s Jackson Hole speech and comments from Barr this morning on inflation'Author of the article:Last updated 13 minutes ago Bullion's drop extended this week as renewed hostilities in the Middle East sent oil prices higher, stoking concerns over persistent price pressures. Photo by Brendon Thorne/BloombergGold fell to the lowest in almost two weeks as a global bond selloff sent yields higher, with traders betting the Federal Reserve may need to raise interest rates to contain inflationary pressure from elevated oil prices.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountBullion dropped as much as 2.5 per cent to the lowest since Aug. 19 as global rates climbed to the highest since 2008 and the dollar edged higher. Both are headwinds for non-yielding gold. The precious metal’s three-day decline is on pace for the longest losing streak since early July.Gold’s decline began Friday when Fed Chair Kevin Warsh doubled down on his vow to fight inflation. The drop extended this week as renewed hostilities in the Middle East sent oil prices higher, stoking concerns over persistent price pressures. Traders ramped up their bets on rate hikes, currently pricing an almost 70 per cent chance that the Fed will boost rates by a quarter-point at its meeting this month.SUBSCRIBER EXCLUSIVE: FP West: Energy Insider brings you behind the oilpatch’s closed doors with exclusive insights from insiders every Wednesday morning.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of FP West: Energy Insider will soon be in your inbox.We encountered an issue signing you up. Please try againFed Governor Michael Barr said on Tuesday that the central bank should be prepared to raise rates if inflation fails to subside, warning price pressures are at risk of becoming entrenched after being above target for more than five years.Gold’s weakness “is a follow-through from Warsh’s Jackson Hole speech and comments from Barr this morning on inflation,” with the renewed selloff in global bonds adding pressure on bullion, said Ryan McKay, senior commodity strategist at TD Securities.Spot gold fell 1.7 per cent to US$4,362.57 an ounce as of 10:50 a.m. in New York. Silver dropped 2.7 per cent to US$64.79. Platinum and palladium both fell. The Bloomberg Dollar Spot Index was steady.—With assistance from Wendy Wells, Jack Ryan and Yihui Xie.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. 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