Gold Heads for Monthly Loss, Bond Yields, Dollar Strengthen

Gold Heads for Monthly Loss, Bond Yields, Dollar Strengthen

Gold prices slipped on Tuesday as a rally in the dollar and U.S. Treasury yields overshadowed support from concerns about rising inflation, sending bullion on track to close. its second consecutive month with losses.

* Spot gold fell 0.4% to $1,848.60 per ounce by 1025 GMT, and was down 2.5% for the month, its biggest drop since September. US gold futures were down 0.2% at $1,852.70.

* The dollar strengthened after comments from a Federal Reserve official, pushing gold back, ActivTrades analyst Ricardo Evangelista said in a note.

* Fed Governor Christopher Waller said on Monday that the central bank should be prepared to raise interest rates by 50 basis points at each meeting from now until inflation is reined in decisively.

* The dollar index added 0.2%, while the 10-year Treasury yield rose as Waller’s comments prompted markets to lower expectations that the Fed may pause after rate hikes. June and July.

* Although gold is seen as a hedge against inflation, rising rates in the United States increase the opportunity cost of holding non-interest-bearing bullion and also boost the dollar, the currency in which the gold metal is traded, which it becomes more expensive for foreign buyers.

* After the latest data showed euro zone inflation hit a new high in May, investors are now focused on US non-farm payrolls data due out this week.

* In other precious metals, silver was down 0.7% at $21.79 an ounce, down 4% on the month. Platinum rose 0.3% to $961.36, posting its first monthly gain in three years. Palladium was up 1.5% at $2,062.81, but is down 11% so far this month, its biggest drop since November.

Samuel Edwards
Samuel Edwards is the name you must have heard many times while reading reports related to Finance, that's what he is good at. From Major Investments to Stock Market Updates, he got 'em all. Be ready to blow your mind by the mind-blowing reports of Finance World from Samuel Edwards.