Gold fell below the $4,000 mark on Friday, 30 October, according to FXStreet's daily wrap, as bets on further Federal Reserve rate hikes offset the support that might otherwise have come from falling Treasury yields and a weaker dollar. I could not confirm an official closing price, so treat the level as approximate.
The move is notable because it ran against the usual pattern, in which lower yields and a softer dollar help gold. It underlines that rate-hike expectations, not just the level of yields, can weigh on a non-yielding asset; our piece on real yields and currencies covers the mechanics. The $4,000 area has been a focus all week, which we discussed in round numbers in forex.
Backdrop
- US 10-year yield was reported near 4.9% on Friday, around a one-month low.
- The BOJ held at 1.25% and the ECB held on Thursday; the Fed held earlier in the week.
- The Reserve Bank of Australia decides on Tuesday, 3 November.
Markets are closed for the weekend. This is market commentary, not a trade recommendation.