Gold prices ended at the lowest in two weeks as benchmark Treasury yields popped to almost 4% a day after the Federal Reserved bumped up rates to the highest in 22 years and said a U.S. recession looks avoidable.
Gold futures for August delivery
GCQ23,
GC00,
closed at $1,945.70 an ounce on Comex, down 1.2% and shedding $24.40, while booking the lowest settlement for the most-active contract since July 11, according to Dow Jones Market Data.
The rising 10-year Treasury yield
TMUBMUSD10Y,
to 3.98% on Thursday and a push higher in the U.S. dollar
DXY,
against a basket of rival currencies put pressure on the precious metal.
Interest rates climbed across the curve “as expectations for a Fed rate cut have been pushed back, raising the US dollar and dropping gold,” Louis Navellier, chief investment officer and founder of Navellier & Associates, wrote Thursday, in a client note.
