Commodities

Gold futures decline amid rising U.S. Treasury yields and stable banking sector

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on the COMEX division saw a 0.53 percent drop, settling the most active December contract at $1,988.60 per ounce, as U.S. Treasury yields continue to climb. This trend was mirrored in silver and for December and January delivery respectively, experiencing downturns in their prices.

The financial market is closely watching speeches from Federal Reserve officials, including a Thursday speech by Chairman Jerome Powell, seeking insights into potential U.S rate cuts. Despite the anticipation, traders are predicting steady rates at the upcoming December Federal Open Market Committee meeting.

Federal Reserve Governor Lisa Cook, during a speech at Duke University on Tuesday, acknowledged the resilience of the banking sector following earlier bank failures. She also highlighted potential risks posed by pronounced liquidity mismatches in nonbank financial institutions amidst tightening financial conditions and decelerating economic activity.

The consensus among traders suggests that despite earlier bank failures, the banking sector has now stabilized. This stability is expected to influence the Federal Reserve’s decision to maintain current rates at the December meeting. The market’s attention remains fixed on the upcoming speeches from Federal Reserve officials for further cues on U.S rate policy.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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