FX.co ★ Gold Advances as Oil Prices and Bond Yields Retreat

Gold climbed above $4,150 an ounce on Friday, advancing for a second straight session as declining oil prices and lower bond yields eased pressure on non-yielding assets. Crude prices fell after President Donald Trump said the US was engaged in “productive discussions” with Iran and would refrain from attacking the country before the midterm elections. His comments came even as Iran stepped up attacks on tankers transiting the Strait of Hormuz this week, and a hurricane disrupted offshore oil production in the Gulf of Mexico.

At the same time, US Treasury yields pulled back from 24-year highs following strong demand at a 30-year bond auction, signaling that investors remained willing to buy long-duration government debt despite the recent selloff. On the monetary policy front, futures markets are now assigning roughly an 82% probability that the Federal Reserve will leave interest rates unchanged this month, while the implied likelihood of a rate increase in December is around 81%.