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Gold Slips Amid Higher Bond Yields, Uncertainty on Fed Rate Path - BLOOMBERG
(Bloomberg) -- Gold edged lower amid an increase in global bond yields and continued strength in the dollar, as traders weighed prospects for US interest rate cuts.
Ten-year Treasury yields — the rate that underpins the global cost of capital — touched a 14-month high Monday. A gauge of the greenback’s strength was up for a fifth day. Both reduced bullion’s appeal as gold pays no interest and is priced in the US currency.
Traders are awaiting a raft of economic data to gauge the Fed’s interest-rate cut path this year. A blowout jobs report Friday has led economists at major banks to pare back forecasts for additional rate cuts. The data due this week include producer prices Tuesday and the consumer price index Wednesday.
Investors are bracing for more volatility ahead of Donald Trump’s return to the White House. A slew of stronger-than-expected data last week saw traders scale back equity risk in favor of haven assets such as the dollar and gold, said Chris Weston, head of research at Pepperstone Group Ltd., in a note.
Bullion fell 0.8% to $2,667.21 an ounce as of 11:10 a.m. in New York. The Bloomberg Dollar Spot Index added 0.2%. Silver, platinum and palladium all declined.
--With assistance from Preeti Soni and Sybilla Gross.
