XAU/USD Dips as Yields Rise, Market Awaits Key Economic Data

Gold prices declined on Monday as rising US Treasury yields dampened investor appetite for the non-yielding asset. This move comes as the Federal Reserve signaled a potential shift towards a slower pace of interest rate cuts, prompting investors to closely monitor upcoming economic data for further clues on the central bank’s policy path.

During the North American trading session, spot gold fell 0.3% to $2,632.47 per ounce. The yield on the 10-year US Treasury Note climbed to its highest level in over a week, making gold less attractive to investors.

Bond yields are back up again, placing pressure on gold. Despite the dollar index weakening, gold prices remained under pressure. The market is now awaiting key economic data releases this week, including the highly anticipated US jobs report on Friday. This data will provide crucial insights into the strength of the labour market and could further influence the Fed’s monetary policy decisions.

Other important data releases this week include job openings data on Tuesday, ADP employment numbers, and the minutes from the Fed’s most recent policy meeting on Wednesday.