Kitco News' general-interest stories takes a look at what is making headlines in the marketplace and how that is impacting precious metals prices
- Rising bond yields continue to take their toll on the precious metals markets as investors flee from gold-backed exchange-traded funds , according to the latest data from the World Gold Council.
While Europe has been the biggest source of outflows in the gold market, last month was led by North American-listed funds. The WGC said that 44 tonnes of gold, valued at $2.7 billion, flows out of North American markets. "It is worth noting that 35% of the tonnage loss came from FX-hedged products as the local currency fluctuated. The rest can be largely attributed to rising interest rate expectations as the region's inflation remained stubbornly high – the Bank of England delivered the 14th consecutive rate hike in August while European Central Bank President Lagarde recently reiterated the necessity of higher rates for longer," the analysts said.
Finally, the WGC said that"other" markets reported inflows of 0.2 tonnes, even as the trend remains negative for the year. Some analysts have noted that gold has been fairly resilient as the 10-year bond yields hold steady above 4%, near its highest level in more than 15 years. At the same time, the U.S. dollar index is holding at a multi-month high above 104.
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