Treasury yields hit 17-year highs and gold struggles as markets price in a 92% chance of a Fed rate hike amid global energy supply concerns.
The 10-year US Treasury yield rose to the highest since 2007, reflecting a global bond selloff driven by inflation and Fed hike expectations.
Gold steadied below $4,300 and is down more than 3% in September as Fed rate hike expectations and rising Treasury yields pressure the non-interest-bearing metal.
Oil steadied after a two-day gain as uncertainty over the duration of Saudi Arabia's East-West pipeline shutdown supports prices.
The Bloomberg Dollar Spot Index was steady after gaining 0.2% as Fed rate hike expectations support the US currency.
Silver was little changed at $63.67 an ounce, reflecting a lack of directional momentum alongside gold.
Saudi Aramco is delaying deliveries to some European customers due to the East-West pipeline shutdown, a logistical disruption with neutral-to-slightly negative operational impact.
Platinum dipped 0.2%, in line with the softer precious metals complex.
Palladium edged up 0.1%, showing slight resilience among precious metals.
The 10-year US Treasury yield climbed to 5.04%, its highest level since 2007, as investors brace for a likely Federal Reserve rate hike. This surge in borrowing costs, coupled with persistent inflation concerns, has pushed gold down more than 3% in September. Meanwhile, oil prices remain elevated due to ongoing uncertainty surrounding the Saudi Arabian East-West pipeline shutdown.
Yields are climbing due to a global bond selloff driven by persistent inflation concerns, booming capital investment, and market expectations that the Federal Reserve will raise short-term borrowing costs.
The shutdown of the East-West pipeline has created supply uncertainty, forcing Saudi Aramco to delay deliveries to European customers and providing support for oil prices despite broader market volatility.