Gold prices rose toward $4,180 per ounce, recovering from a two-month low as U.S. 10-year Treasury yields pulled back from 24-year highs. While St. Louis Fed President Alberto Musalem stated that further rate hikes are necessary to reach inflation targets, markets are currently pricing an 82% chance of a hike by December. Additionally, the geopolitical risk premium for gold eased after President Trump ruled out a military strike on Iran before the midterm elections. Overall, the recovery in gold prices was primarily supported by the decline in yields and the easing of the U.S. dollar.
Gold recovered from two-month lows as 10-year Treasury yields pulled back from 24-year highs, though hawkish Federal Reserve commentary limits the relief rally.
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