NEW YORK: Gold prices slipped from more than one-week high on Monday, as the dollar and US Treasury yields edged up from session lows, with investors awaiting Federal Reserve Chair Jerome Powell’s speech later this week for clues on the rate-hike path.
Spot gold fell 0.4% to $1,749.54 per ounce by 1019 a.m. ET (1519 GMT), after hitting its highest since Nov. 18 earlier in the day. US gold futures fell 0.3% to $1,749.10.
“The dollar has been steadily moving off its lows from this morning and the metals are starting to come back off,” said Daniel Pavilonis, senior market strategist at RJO Futures.
The dollar recouped losses after falling to a near two-week low earlier in the session. A stronger dollar makes greenback-priced metals more expensive for other currency holders.
Benchmark US 10-year bond yields also edged up from a near two-month low.
The market’s focus this week will be on Powell speech at a Brookings Institution event on Wednesday where he is expected to speak on the outlook for the US economy and the labour market.
Also on the radar, US non-farm payroll data for November is due on Friday, which might shift expectations around the Fed’s policy move in December. Traders currently anticipating a 50-basis-point rate hike.
“The gold and silver markets are weighing the bearish aspect of a slowing Chinese economy crimping consumer and commercial demand for metals and other raw commodities,” said Jim Wyckoff, senior analyst at Kitco Metals.
“However, some safe-haven demand amid the geopolitical uncertainty is limiting selling interest in gold and silver.” Hundreds of demonstrators and police clashed in Shanghai on Sunday night as protests over China’s stringent COVID-19 measures flared for a third day and spread to several cities.
Silver dipped 2% to $21.16 per ounce, platinum gained 1.4% to $994.13, while palladium fell 0.8% to $1,837.75.
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