Gold prices fell on Monday as U.S. Treasury yields rose, while the Federal Reserve's recent hint at a slower pace of rate cuts in 2025 kept investors keenly awaiting a slew of economic data due this week to shed more light on that view.
Spot gold fell 0.2% to $2,634.52 per ounce by 2:27 a.m. ET (1927 GMT). U.S. gold futures settled 0.3% lower at $2,647.40.
"Bond yields are back up again, placing pressure on gold," said Nitesh Shah, commodity strategist at WisdomTree.
Yield on the 10-year U.S. Treasury Note rose to an over eight-month high, making non-yielding gold less attractive
"We expect a $3,050/oz by the end of the year based on a 'consensus' economic view of dollar depreciation and falling bond yields. Further escalation in tension in the Middle East could drive upside risk to our forecast," Shah said.
The Fed's latest projections in December implied a shift to a more cautious pace of rate cuts this year, with the majority of the policymakers expressing concern that inflation could reignite.
The central bank may need to keep rates higher for longer to address persistent inflation, which remains above its 2% target.
U.S. President-elect Donald Trump takes office on Jan. 20, and his proposed tariffs and protectionist policies are expected to stoke further inflation.
"There's speculation that Trump is going to pull back on tariffs ... If (the prices of) commodities go up, inflation's going to remain higher for longer," Phillip Streible, chief market strategist at Blue Line Futures, said.
Gold slid despite the dollar index (.DXY), slumping 1%, down from a more-than-two-year high on Thursday.
Market participants now look ahead to the U.S. jobs report on Friday, which could help illuminate the Fed's policy path going forward.
Investors are also awaiting job openings data on Tuesday, ADP employment numbers, and the minutes from the Fed's most recent policy meeting on Wednesday.
Spot silver gained 1.1% to $29.93 per ounce, platinum fell 0.8% to $930.41, and palladium lost 0.4% to $918.25.
Source : Reuters
Gold prices pared losses on Friday (October 24) after slightly lower-than-expected US inflation data reinforced expectations that the Federal Reserve will cut interest rates next week, but the preciou...
Gold prices pared losses on Friday (October 24) after slightly lower-than-expected US inflation data reinforced expectations that the Federal Reserve will cut interest rates next week, but the preciou...
Gold drew attention during LME Week, with prices up by around 60% this year. The rally has been driven by uncertainties over global trade, heightened geopolitical tensions, US fiscal stability and the...
Gold falls in early Asian trade on likely further unwinding of long positions, analysts say. "Our gold analysis suggests moderate further downside may be on the cards," says Fawad Razaqzada, market an...
Gold prices rose more than 1% on Thursday (October 23rd) after two consecutive sessions of declines, as resurgent geopolitical risks boosted demand for safe-haven assets and investors prepared for key...
Three major US indexes closed at new record highs after a lower-than-expected inflation report raised the possibility of a Federal Reserve interest rate cut later this year and prompted investors to shift to riskier assets. The S&P 500 rose...
Oil prices fell on Friday (October 24th) as skepticism crept into the market regarding the Trump administration's commitment to sanctions against Russia's two largest oil companies related to the war in Ukraine. Brent crude futures closed 5 cents,...
Gold prices pared losses on Friday (October 24) after slightly lower-than-expected US inflation data reinforced expectations that the Federal Reserve will cut interest rates next week, but the precious metal is still expected to post its first...
Following the final October meeting (October 28–29, 2025), the FOMC calendar still lists December 9–10, 2025. This means the Fed could technically...
Asia-Pacific markets rose Friday, after the White House said that U.S. President Donald Trump and China's President Xi Jinping were set to hold...
US stocks rebounded, with the three major indexes closing near record highs on Thursday (October 23rd). The S&P 500 rose 0.6%, the Dow Jones...
European stocks edged lower Friday afternoon after briefly hitting record intraday highs, as investors digested corporate earnings and economic data...