FX.co ★ Gold Eases to 1-Month Low

Gold prices fell more than 1% on Wednesday to around $4,100 per ounce, their lowest level in over a month, pressured by persistently high interest rates. Yields on long-dated government bonds climbed to multi-decade highs across major global credit markets, increasing the opportunity cost of holding non-interest-bearing assets such as gold and weighing on precious metals. US Treasury yields rose further after robust growth and inflation signals in the latest ISM PMI data. Adding to the pressure, minutes from the Federal Reserve’s most recent meeting showed broad agreement within the FOMC that additional rate hikes may be needed to curb inflation. At the same time, mounting concerns over ballooning budget deficits in the United States, France, and Japan contributed to rising borrowing costs.