Photographer: Andrey Rudakov / Bloomberg
Photographer: Andrey Rudakov / Bloomberg
Gold fell while the dollar remained resilient and the 10-year Treasury’s yields remained close to the highest level in more than a year, weighing on the interest-free precious metal.
Investors will turn their attention to a bond slate auctions focused on maturities that were harmed amid optimistic growth and inflation prospects. Federal Reserve President Jerome Powell reiterated in a Wall Street Journal editorial that the central bank will continue to provide aid to the economy “for as long as it takes”, since the recovery is far from complete. Richmond Fed President Thomas Barkin said in an interview with Bloomberg TV on Sunday that there are no sign yet of unwanted inflationary pressures.
Gold fell nearly 9% this year, with investors moving from havens to more risky assets, although its role in protecting against inflation has helped to support prices. On Friday, the Fed said it would allow a significant capital drop for large banks expires at the end of the month. This caused dollar and bond yields to rise, with the latter staying close to their highest levels in about 14 months on Monday.
“The opportunity cost of being in a reflective environment seems to be holding gold,” said Chris Weston, head of research at Pepperstone Group Ltd. . “
Spot gold fell 0.7% to $ 1,732.47 an ounce at 6:46 am in London, after rising 0.5% on Friday. Silver fell 2.3%, while platinum and palladium also declined. The Bloomberg Dollar Spot Index advanced a third day.
Meanwhile, Powell and Treasury Secretary Janet Yellen are due to make their first joint appearance before the U.S. House Financial Services committee to testify about Fed and Treasury pandemic policies on Tuesday.
– With the help of Swansy Afonso