Higher yields and firm dollar push gold to two-week low
Spot gold drops 2.4% to US$4,342.20 an ounce as a break below its 200-day moving average intensifies selling ahead of US jobs data
Gold fell more than 2% to its lowest level in two weeks on Tuesday (September 1), pressured by rising US Treasury yields, a stronger dollar and further technical selling.
Spot gold was down 2.4% at US$4,342.20 an ounce at 2.02pm US Eastern time, or 6.02pm GMT. US gold futures declined 1.9% to settle at US$4,396.40.
Technical break accelerates selling
Bullion had fallen below its 200-day moving average, currently near US$4,528, on August 28.
The breach prompted additional selling after gold reached a more than three-month high during the previous week.
Jim Wyckoff, a market analyst at American Gold Exchange, said: “Gold price has dropped below its 200-day moving average, which is an important technical signal.”
US Treasury yields climbed to their highest level since January 2025 as tensions in the Middle East fuelled inflation concerns and a global bond sell-off.
Higher yields increase the opportunity cost of holding gold, which pays no interest, while a stronger dollar makes bullion more expensive for buyers using other currencies.
US employment figures move into focus
Traders raised their expectations of tighter US monetary policy after Federal Reserve chair Kevin Warsh warned that more action could be required if inflation failed to return to the central bank’s 2% target.
The CME FedWatch Tool put the probability of a September rate increase at 66%.
Investors are awaiting the ADP employment report on Wednesday and non-farm payrolls figures on Friday for further indications of the policy outlook.
Wyckoff said gold was likely to trade sideways or move lower in the near term, with silver facing a similar outlook.
Other precious metals also declined:
- Silver fell 2.9% to US$64.57 an ounce
- Platinum dropped 1.9% to US$1,756.58 an ounce
- Palladium lost 3.2% to US$1,312.13 an ounce
