Slightly Weaker After Hitting Lowest Level In Seven Months

Gold is slightly weaker in the Asia-Pac session, after closing -0.3% at $1823.02 on Tuesday. Tuesday’s close was the lowest in almost seven months, as US tsy yields continued to push to multi-year highs.

• US tsys finished 5-14bps cheaper across major benchmarks, with a steepening of the curve. Higher-than-expected JOLTS data drove the move, with the 10-year yield reaching a fresh cycle high of 4.8081%.
• US job openings unexpectedly rose sharply by 690k in August to 9.6m, breaking a run of declines. However, the quits rate was unchanged at 2.3%, matching the lowest level since 2020, consistent with workers remaining less confident in their ability to find another job in the current market.
• Fed Mester did little to dissuade the tsy sell-off. In contrast, Fed Bostic struck a more cautionary view: “I am not in a hurry to raise, but I am not in a hurry to reduce either.”
• Focus now turns to the scheduled economic data later today, including ADP Private Employment and ISM Services. US Non-Farm Payrolls are due for release on Friday.