The momentum in gold's recent rally has lost much of its shine, with the precious metal unable to reach new record highs since Aug. 20, as U.S. Treasury yields stabilize and the dollar rebounds.
On Wednesday, gold traded at $2,505 per ounce, down 0.8% for the day, poised to break a three-session winning streak.
The dollar's recent surge, driven by positive catalysts, appears to be fading, prompting traders to take profits and reduce exposure to gold.
Rate-cut expectations have not seen significant improvement, with speculators fully pricing in a September rate cut but assigning a 65% probability to a smaller 25-basis-point reduction, compared to 35% for a 50-basis-point cut, according to the CME FedWatch tool.
As the Federal Reserve's rate cut expectations remained largely unchanged, Treasury yields stabilized, with the 10-year yield trading at 3.83% on Wednesday. Despite falling 67 basis points since early July, the yield hasn't dropped below 3.75% since earlier this month, when a volatility event caused wild swings in equity and fixed income markets.
Geopolitical tensions in the Middle East, which have historically boosted safe-haven assets like gold, did not escalate into a broader conflict after recent exchanges between Israel and Hezbollah. This de-escalation has further diminished gold's appeal.
The U.S. dollar index (DXY) was up 0.4% Wednesday, after closing Tuesday at the lowest levels since July 2023.
Wednesday's Pullbacks In Gold Mining Stocks
The dip in gold prices has led to a more significant decline in gold mining stocks. The VanEck Gold Miners ETF (NYSE:GDX) and the VanEck Junior Gold Miners ETF (NYSE:GDXJ) both fell by 2.5%.
Company
1-day return (%)
Torex Gold Resources Inc. (NYSE:TXG)
-4.89%
Endeavour Silver Corp. (NYSE:EXK)
-4.75
First Majestic Silver Corp. (NYSE:AG)
-4.63
Coeur Mining, Inc. (NYSE:CDE)
-4.56
OceanaGold Corporation (NYSE:OGC)
-4.47
Pan American Silver Corp. (NYSE:PAAS)
-4.41
Investors Funnel $2.2B Into These 5 Real Estate ETFs In Anticipation Of Fed Rate Cuts
Image created using artificial intelligence via Midjourney.
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オーストラリアでは、moomooの投資商品及びサービスはMoomoo Securities Australia Limitedによって提供され、オーストラリア証券投資委員会（ASIC）の管理を受けております（AFSL No. 224663）。「金融サービスガイド」、「利用規約」、「プライバシーポリシー」などの詳細は、Moomoo Securities Australia Limitedのウェブサイトhttps://www.moomoo.com/auでご確認いただけます。
Rate-cut expectations have not seen significant improvement, with 
利下げの期待は大きく改善しておらず、投機筋は9月の利下げを完全に織り込んでいますが、25ベーシスポイントの小幅な利下げへの確率を65％、50ベーシスポイントの利下げへの確率を35％としています。これはCME FedWatchツールによるものです。