The post Gold plunges from record high as US yields and USD strengthen appeared on BitcoinEthereumNews.com.

Gold retreats from all-time high of $2,758 as US 10-year Treasury yields rise, reflecting fears of higher deficit spending under a potential Trump presidency. The US Dollar Index (DXY) hits a two-month high at 104.50, further weighing on Gold as risk appetite shifts toward safe-haven currencies. Traders now price in a 92% chance of a 25 bps Fed rate cut in November with another cut expected by year-end. Gold price plunges from all-time high of $2,758 on Wednesday as US Treasury yields climbed, while the Greenback refreshes a two-month high, according to the US Dollar Index (DXY). At the time of writing, the XAU/USD trades at $2,716, down more than 1%. Risk appetite has deteriorated, sponsoring a flight to safe-haven currencies, but not assets like the golden metal. The US 10-year Treasury note yield has climbed over 65 basis points (bps) since the Federal Reserve (Fed) cut rates by 50 basis points (bps) on September 18, amid fears that Trump’s presidency could be inflationary. “The yields rising are implying a pro-growth administration is potentially coming into power and there’s some fear about deficit-spending,” said Thomas Hayes, chairman at Great Hill Capital in New York. The US 10-year T-note yields 4.248%, gaining four basis points. The DXY, which measures the performance of the US currency against another six, edges up 0.42%, at 104.50. Market participants are pricing a 92% chance that the Fed would lower rates by 25 bps at the next meeting in November and another one in December. Investors seem convinced that former President Donald Trump could beat Vice-President Kamala Harris, as showed by most betting websites. As we get close to the US election  on November 5, investors are taking shelter in view of that possibility. Investors are somewhat worried that Trump’s deficit-spending, use of tariffs and major…

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Filed under: News - @ October 23, 2024 7:25 pm