Gold and Silver Retreat as Rate-Hike Bets Mount Following Fed Remarks

Gold and silver prices slipped on Monday, August 31, pressured by surging US Treasury yields and growing market expectations of a potential Federal Reserve interest rate hike.

Spot gold fell roughly 1% during morning trade to around $4,405 per troy ounce, building on a 3.2% drop recorded on Friday. Silver also weakened, dipping toward $65 per ounce during Asian trading hours before recovering to approximately $66.1 per ounce.

Pressure on non-yielding bullion intensified following remarks from Fed Chair Kevin Warsh stressing the imperative to maintain the fight against inflation, which pushed the market-implied probability of a September rate hike to around 57%. Investors are now shifting focus toward Friday's US August non-farm payrolls data for further directional cues on monetary policy.

N.Tebrizli