Gold Price Near $4,172 Is 25% Below January’s High…
By Tobi Opeyemi Amure
AI summary of the source article
Gold traded around $4,172 an ounce, sitting 25.3% below its record high despite October Federal Reserve rate-hike expectations plunging from 50.9% to 21.6% following weak September payroll data. Bullion failed to rally as a strengthening US dollar and 10-year Treasury yields reaching multi-decade highs kept upward pressure on real yields. Demand from fund holders has nonetheless remained robust; World Gold Council data showed global gold-backed ETFs added $18 billion in August, pushing collective holdings to a record 4,189 tonnes. Market participants are now monitoring upcoming FOMC minutes and September CPI inflation data for further direction.
Why it matters
Bullion's inability to rebound despite rapidly fading interest rate hike odds demonstrates that multi-decade high Treasury yields and a strong dollar currently exert primary control over precious metals pricing.
Key facts
- Gold traded around $4,172.87, down 25.3% from its record high of $5,589.38.
- CME FedWatch probability for an October Fed rate hike fell to 21.6% from 50.9% in one week.
- Global gold-backed ETFs recorded an $18 billion inflow in August, pushing collective holdings to a record 4,189 tonnes.