Global gold prices weakened again in tonight's trading after rising in the previous session. The main pressure came from the strengthening US dollar and rising US government bond yields, reducing gold's attractiveness as a non-yielding asset. As the dollar strengthens, the cost of holding gold for investors transacting in other currencies becomes more expensive, prompting some market participants to sell and take profits after the rally in recent weeks.

At the same time, market participants were still closely monitoring the US employment data, released after a recent delay. The report showed that the US economy was still adding jobs, albeit not significantly, raising the view that economic conditions were not yet weak enough to force the Federal Reserve to cut interest rates aggressively. Expectations that the Fed's rate cuts could be delayed or implemented more gradually limited the short-term upside for gold.

The combination of a strengthening dollar, persistently high bond yields, and expectations of a recalibrated interest rate cut exerted pressure on gold prices tonight. Investors are now awaiting the release of the next economic data, particularly inflation data and further comments from Fed officials, for new clues on the direction of monetary policy. If signals emerge again that point to clearer policy easing, gold could potentially find renewed support. However, for the time being, this precious metal will still have to contend with market sentiment that is more favorable to the dollar. (cay)

Source: Newmaker.id