PT Solid Gold Berjangka | Gold Steadies After Bruising From Surging Dollar, Higher Yields
Gold held losses after the dollar rallied to its highest level this year and US bonds extended a selloff, as consensus for a likely higher-for-longer rate scenario continued to build momentum across markets.
The yield on 10- and 30-year Treasury notes surged to new multiyear highs on Monday, with gains fueled by expectations the Federal Reserve will hold interest rates high and increase supply of new bonds. The dollar rose as much as 0.5% as Treasuries came under pressure. Both a stronger greenback and higher yields are generally negative for non-interest bearing bullion, as it is priced in the US currency.
Traders are looking ahead to a key US inflation report due this week that’s expected to show a deceleration in consumer-price growth.
Spot gold was little changed at $1,916.28 an ounce at 8:11 a.m. in Singapore, after falling 0.5% on Monday. The Bloomberg Dollar Spot Index was flat, following a 0.4% gain in the previous session. Silver and platinum were steady, while palladium slipped.
Source : Bloomberg