Downloaded from: justpaste.it/913x7
Gold prices ease on higher 10-year Treasury yields, rebounding dollar Spot gold fell 0.1% to $1,810.65 per ounce. U.S. gold futures eased 0.1% to $1,811.10
Gold prices inched lower on Monday, as Treasury yields moved higher and the dollar bounced up, although concerns over a recovery in the U.S. economy limited bullion's losses. Spot gold fell 0.1% to $1,810.65 per ounce by 0319 GMT. U.S. gold futures eased 0.1% to $1,811.10. Benchmark 10-year Treasury yields were hovering near their highest since March last year hit in the previous session, increasing the opportunity cost of holding non-yielding bullion.
Yields are "probably the biggest single headwind" for gold, Nicholas Frappell, global general manager at ABC Bullion said, adding gold remains vulnerable to the dollar, which has more room to extend its recent gains. The dollar attempted a rebound after falling from an over two-month peak on Friday. A stronger dollar makes gold expensive for holders of other currencies. Concerns of a slow recovery in the United States after a weakerthan-expected U.S. jobs report limited gold's decline. Weaker nonfarm payrolls have raised economic uncertainty as well as high expectations for more fiscal stimulus from the U.S., said Howie Lee, an economist at OCBC Bank. Gold can rise to $1,900 levels later in 2021 as Treasury yields are capped at some stage and focus shifts to inflation expectations, Lee said...Read More