Business · Markets · 1 hr ago
Gold trades above $4,200 as oil prices and bond yields fall
Gold edged higher on Monday and traded above $4,200 an ounce, after rising 1.3% the previous week.
Lower oil prices and falling bond yields helped ease pressure on gold.
The metal does not pay interest, so it can become less attractive when borrowing costs and interest rates rise.
The drop in oil prices followed news that Ukraine and Russia would observe an immediate ceasefire in the energy sector, announced by the United States.
High energy prices linked to the war between the United States and Iran had added to inflation concerns and pressure on gold.
Traders have reduced their expectations for further interest-rate increases, though markets still see a chance of increases later this year.
Investors are awaiting US inflation data on Wednesday and producer-price and retail-sales data on Thursday.
Gold traded above $4,200 an ounce on Monday as falling oil prices and bond yields eased pressure on the metal.
Gold rose 1.3% last week, while silver gained 0.6% to $61.
Lower borrowing costs may reduce expectations for further central bank rate increases, supporting gold, which pays no interest.
Markets were awaiting US consumer price data on Wednesday and producer price and retail sales data on Thursday.
Traders saw a 17% chance of a rate increase in October and an 86% chance of one by December, according to CME’s FedWatch tool.
- Who
- Gold traders and investors, with central banks’ interest-rate decisions in focus.
- What
- Gold traded above $4,200 an ounce as oil prices and bond yields fell.
- When
- Monday, October 12, 2026.
- Where
- Not stated.
- Why
- Falling oil prices and bond yields eased pressure on gold and reduced expectations for further interest-rate increases.
This story does not have two clearly opposing sides.
The decline in long-term bond yields and the fall in oil prices could provide some cautious optimism about gold.
US 30-year bond yields fell, supporting gold while the US market was closed.
Gold traded above $4,200 an ounce as oil prices and bond yields fell.
US consumer price data was due to be released.
US producer price and retail sales data were due to be released.
- Gold price
- Above $4,200 an ounce
- Gold's weekly gain
- 1.3%
- Silver price
- $61, up 0.6%
- October rate-increase probability
- 17%, according to CME’s FedWatch tool
- December rate-increase probability
- 86%, according to CME’s FedWatch tool
Sources
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