Gold prices finish down on firmer US dollar, bond yields

Gold finished in the red today, Sept. 25, hurt by a stronger US dollar and a rise in the yield on the 10-year Treasury note to a level last seen in October 2007, as markets assessed the path of the Federal Reserve’s monetary policy.

In an interview with CNBC today, Chicago Federal Reserve President Austan Goolsbee said just how long the Fed keeps rates high will be a matter of debate in the months ahead.

“Pretty soon in here, the question is going to stop being how much more are they going to raise and it’s going to transform into how long do we need to hold rates,” Goolsbee was quoted as saying.

Elsewhere, European Central Bank (ECB) President Christine Lagarde, in a speech earlier today, stressed, “Our future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary.”

This week, investors are awaiting the release of data on the US Personal Consumption Expenditures Price Index — a gauge of inflation in the US economy. They are also bracing for Fede Chair Jerome Powell's address on the latest policy decision.

In terms of trading, gold prices for December delivery contracted by 0.45%, or $9, to close at $1,936.60 per ounce.

Meanwhile, the US dollar index, which measures the performance of the US currency against a basket of six major currencies, climbed by 0.35% to 105.96 points at 08:52 pm Makkah time, after touching a year-to-date peak of 106.10 points.