Gold prices fell slightly on Monday as an uptick in U.S. bond yields and a firmer dollar raised the opportunity cost of holding the non-yielding bullion.
Spot gold slipped 0.1 percent to $1,749.09 per ounce, while U.S. gold futures were down 0.2 percent at 1,748.95.
The U.S. treasury yield rose to three-month high at 1.47 percent and the dollar rose against a basket of currencies, as investors awaited speeches from a slew of Fed officials this week including Chairman Jerome Powell for clues on when the central bank could taper its pandemic-era economic support.
Ten-year bond yields in the euro area rose to their highest in almost three months as it looked unlikely a leftist coalition would take power in Germany.
Olaf Scholz of the center-left Social Democrats defeated Chancellor Angela Merkel’s conservatives in an extremely tight election, setting in motion what could be months of complex coalition talks to decide who will lead Europe’s biggest economy.
The left wing Die Linke party fell below the 5 percent threshold needed to enter parliament.
Investors were also keeping an eye on developments surrounding debt-laden China Evergrande, after the property giant missed a bond payment deadline last week.
The material has been provided by InstaForex Company – www.instaforex.com
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