Gold steadies above $4,000 as Treasury yields top 5% on Fed bets
What's new: Traders now price in a 100% chance of a December Fed rate increase, lifting borrowing benchmarks and capping bullion's rebound.
Gold ticked higher after a sharp sell-off, but the rebound stayed limited as Treasury yields climbed and traders hardened bets on another Federal Reserve rate increase in December. Spot gold rose 0.3% to $4,043.62 an ounce after sliding nearly 3% a day earlier, while December futures gained 0.5% to $4,051.10. At the same time, the 10-year Treasury yield held above 5% and traded near 5.15%, increasing the pressure on non-yielding assets such as bullion. Markets moved after hotter US inflation readings and follow-up producer price data reinforced expectations that the Fed will keep tightening. CME FedWatch showed investors fully pricing in a December hike, with most expecting a quarter-point move.