What happened
Spot gold declined 0.4% to $US4,271.16 per ounce in New York trade, touching its lowest level since 16 September. US gold futures dropped 0.3% to $US4,306, while spot silver fell 1.8% to $US63.29 per ounce. The pullback was driven by the US dollar reaching a two-month high and 10-year US Treasury yields remaining near two-decade highs.
Why it matters here
Non-yielding precious metals face headwinds when global real interest rates and sovereign bond yields rise. For Australian gold producers listed on the ASX, lower US dollar spot prices reduce top-line revenue, though potential weakness in the AUD/USD exchange rate can partially buffer domestic Australian dollar margins.
What to watch
Upcoming US Federal Reserve policy commentary, official inflation data releases, and movements in 10-year US Treasury bond yields over coming sessions.
Source
mining.com