India, Oct. 1 -- Gold extended its recent rising streak to the third day amidst softer-than-expected PCE inflation readings from the U.S. that reduced expectations of an immediate rate hike by the Federal Reserve. The decline in bond yields that followed has lifted gold higher from the levels recorded on Wednesday.
With the CME FedWatch tool showing the likelihood of a Fed rate hike in late October falling to around 36 percent, sentiment towards the yellow metal has improved further. A decline in general interest rates bodes well for gold as it reduces the opportunity cost of holding gold, an asset that does not command any interest yield. Ten-year bond yields in the U.S. have declined more than a half a percent. Bond yields have eased con...