Gold prices ended a five-day losing streak, higher at around $1,920, up 0.20% in Thursday's Asian session. However, precious metals are facing downward pressure as traders consider the possibility that the US Federal Reserve (Fed) will increase interest rates by 25 basis points (bps) until the end of 2023. .
Hawkish sentiment surrounding the Fed's policy decision at the upcoming September meeting continues to support US Treasury interest rates. This strengthens investors' confidence in the US Dollar (USD). The 10-year US bond yield rose to 4.28%, up 0.05% at press time. The US Dollar Index (DXY) is around 104.80, measuring the value of the Greenback against six major currencies.
Hawkish sentiment surrounding the Fed's policy decision at the upcoming September meeting continues to support US Treasury interest rates. This strengthens investors' confidence in the US Dollar (USD). The 10-year US bond yield rose to 4.28%, up 0.05% at press time. The US Dollar Index (DXY) is around 104.80, measuring the value of the Greenback against six major currencies.
The Fed is still expected to maintain its hawkish stance, given that inflation remains stable and the labor market strong. The concept is largely expected to weigh heavily on gold and other metals for the rest of the year.