Gold prices spike at settlement for 2nd straight session

Gold bars 

Gold prices consolidated their gains at settlement today, Oct. 16, with US Treasury bond yields declining amid anticipation of the release of US retail sales data tomorrow, to weigh forecasts of future monetary easing.

Bullion for December delivery climbed by 0.45%, or $12.40, to finish at $2,691.30 per ounce.

On the other hand, the US two-year, 10-year and 30-year bond yields fell to record their lowest close since Oct. 4, according to Dow Jones Market data.

Atlanta Federal Reserve President Raphael Bostic explained that Fed policymakers' projections varied in their quarterly report between a 50-basis-point (bp) interest rate cut over the remaining two meetings this year and other estimates of more or less severe magnitudes.

The CME FedWatch Tool indicated that market expectations for the US central bank to trim interest rates by 25 bps during its monetary policy meeting on Nov. 6-7 rose to 94.2%, from 80.3% a week ago.