Daily digest market movers Gold price undermined by higher US real yields

Gold prices dive as US real yields climbed one and a half basis points to 1.936%.

The US 10-year Treasury bond yield rose almost two basis points to 4.196%.

The US Dollar Index (DXY), which tracks the buck's performance against six currencies, edged up 0.63% at 106.44 on the day.

The ISM Manufacturing PMI in November rose from 46.5 to 48.4, exceeding forecasts of 47.5. The S&P Global Manufacturing PMI for the same period increased from 48.5 to 49.7, above the 48.8 expected by the consensus.

Fed officials seemed convinced that further easing is needed and may cut rates at the December meeting. However, they adopted a more cautious stance, opening the door for a pause in the easing cycle.

Data from the Chicago Board of Trade, via the December fed funds rate futures contract, shows investors estimate 24 bps of Fed easing by the end of 2024.