Gold and Bond Yields Amid Hyperscaler Developments
Gold (XAU/USD) slipped to about $4,120 in European trade on Tuesday as US bond yields stabilised and oil prices climbed. The 10-year US Treasury yield was down 0.35% at around 5.13% at the time of writing, after rising 1.2% on Monday, reinforcing the headwind that higher returns on US-backed assets can pose for a non-yielding metal. The move comes as US “hyperscalers” prepare to publish Q3 results, with Meta due on Wednesday and Microsoft, Amazon and Google next week. Goldman Sachs expects five AI hyperscalers to lift combined capital expenditure to roughly $1.2 trillion next year, a prospect linked to firmer yields after a recent period of doubt over data-centre spending.
Oil Prices, Fed Outlook, and Gold Technicals
Oil has added almost 15% over the past two weeks from lows of $86.32, with WTI near $98.45 as Middle East risks keep a risk premium in energy markets, including concerns over Bab al-Mandeb and the Suez Canal. The Federal Reserve has entered its blackout period; officials have reiterated a 2% inflation target without signalling urgency on further tightening, while the CME FedWatch tool points to no change in October and an increase in December. Technically, XAU/USD remains below the 20-day EMA at $4,186.57, with RSI at 43.66; resistance sits at $4,186.57 and support at $4,000, with $4,300 flagged if the EMA is reclaimed.
