The impact of rising US debt issuance on gold

Gold traded sideways after falling to a three-week low on signs that the US labor market remains strong and bond yields rose. Gold traded sideways after falling to a three-week low in the previous session as bond yields rose on rising US debt issuance and warm labor market data. Spot gold is trading at $1,932 per ounce. The ounce of gold and gram gold calculated on the interbank dollar/TL exchange rate are finding buyers at TL1,675. A quarter of gold is being sold for TL2,760, while a Republic gold coin is being sold for TL11,140. The precious metal has been under pressure as US 10-year bond yields rose to their highest level since November on Wednesday. These gains were supported by a plan to support longer-term bond sales. While US companies provided more employment than expected in July, this situation has led to continued pressure on the Fed to raise interest rates. On the other hand, the yield curve has steepened in addition to the negative factors. This was seen as an indication that bond investors are suppressing their concerns about the possibility of a recession, which would increase the safe-haven appeal of the precious metal. Swap investors have lowered their pricing for a new rate hike at the Fed’s September meeting this week, although forecasts for the interest rate path remain divided.