Gold steadied on Thursday, although prices hovered near a six-month low hit in the previous session due to an elevated dollar and Treasury yields, with markets awaiting US economic data for clues on the Federal Reserve’s interest rate trajectory.
Spot gold held its ground at $1,874.39 per ounce, after shedding 1.4 percent , its biggest daily decline since July, on Wednesday. US gold futures were flat at $1,891.10.
Data on Wednesday showed orders for long-lasting US manufactured goods rose in August, and business spending on equipment appeared to regain momentum.
“Durable goods (figures) were higher than expected – that’s why the 10-year (Treasury yield) was higher, that’s why the dollar also moved higher, and that’s why we saw selling pressure for gold,” said Hugo Pascal, a precious metals trader at InProved.
The dollar hit a 10-month high against its major peers while Treasury yields climbed a fresh 16-year peak, as investors bet the US economy will outperform its competitors in an environment of high interest rates.
