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As rates trajectory worries spikes, gold prices are hovering at 10-day lows

07 Sep,2023
As rates trajectory worries spikes, gold prices are hovering at 10-day lows

The greenback nudged up and Treasury yields added tense on gold prices on Thursday, elsewhere evidence of persistent inflation spurred worries that the Fed will stick to its hawkish stance.

Spot gold advanced by 0.1% to $1,919.32 per ounce, meanwhile gold futures slipped 0.1% to $1,943.30 per ounce.

Data also indicated some resilience in the American economy, which reduced demand for gold as a safe haven despite rising expectations that the nation will avoid a recession this year.

However, with a number of Federal Reserve speakers scheduled before a decision on interest rates later in the month, U.S. interest rates continued to be a major source of anxiety for gold markets.

According to data released on Wednesday, August's growth in the U.S. service sector was stronger than anticipated. But data showing an increase in service sector pricing, which is likely to contribute to stickier inflation readings in the coming months, was a particular source of debate for investors.

The reading spurred new worries that U.S. inflation will remain sticky this year and, together with a recent rise in oil prices, prompted the Federal Reserve to adopt a hawkish stance.

Rates being held steady by the Fed in September is widely anticipated. The central bank, though, also plans to maintain higher rates for longer.

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