Gold Drops as 10-Year US Bond Yield Hit 1.795%
Trading data shows that Gold stayed under the US$1,800 mark early on Monday, trading lower on a stronger dollar and rising yields on United States bonds. Today, the 10-year US Bond yield hits 1.795 per cent.
Market data shows that Gold for February delivery was last seen down US$5.00 to US$1,792.40 per ounce.
The price of the metal dropped back below US$1,800 last week after the Federal Reserve signalled a move to a more hawkish monetary policy that could see rates hiked as many as three times this year, while a lacklustre jobs report offered no support.
“We believe that the pressure on the Fed to raise interest rates is growing.
“According to remarks made by Fed Governor Waller, the Fed will be ending its bond purchases in mid-March and will already decide on a rate hike at its meeting on 15/16 March,” Commerzbank analyst Daniel Briesemann said in a note.
With little fresh economic data released on Monday, the U.S. dollar rose, with the ICE dollar index last seen up 0.42 points to 96.13.
Higher bond yield and stronger dollar bearish for gold since it offers no interest. The yield on the U.S. 10-year note was last seen up 2.8 basis points to 1.795%, near a two-year high. # Gold Falls as 10-Year US Bond Yield Hit 1.795%
Read Also: Gold Falls as Hawkish Fed Minutes Boost Bond Yields
