Domestic retail gold prices (96.5%) opened sharply lower this morning, falling 1,150 baht per baht-weight. The Gold Traders Association announced its first price of the day at 9:03 a.m., with gold bars buying at 67,700 baht per baht-weight and selling at 67,900 baht per baht-weight. Ornamental gold was buying at 66,340 baht per baht-weight and selling at 68,700 baht per baht-weight. Analysis from Hua Seng Heng Gold Futures noted that global gold fell as the dollar index strengthened above 99.0 points and the 10-year U.S. Treasury yield rose for a fifth day to 4.79%, after Michael Barr and Kevin Warsh signaled a hawkish stance that the Fed might raise interest rates at the FOMC meeting on September 16 if inflation does not slow toward the 2% target. Meanwhile, Brent and WTI crude oil prices continued to climb as the U.S. prepares to sanction Iran's banking sector and Iran threatens to block oil in the Persian Gulf after two Saudi oil tankers were attacked in the Strait of Hormuz. The SPDR fund bought 4.28 tonnes of gold, with global gold having support at $4,300 and resistance at $4,350. If it breaks below $4,280, a further correction is possible.
10-year Treasury yield rises to 4.79% on hawkish Fed comments.
Hawkish Fed signals raise rate hike expectations, pushing yields up.
