Gold was down on Monday morning in Asia
2022.07.11 07:16
Gold was down on Monday morning in Asia – Budrigannews.com
Gold was down on Monday morning in Asia, as the U.S. dollar strengthened over interest rate hike bets after healthy U.S. employment data.
Gold futures edged down 0.10% to $1,740.50 by 12:01 AM ET (4:01 AM GMT). The dollar, which normally moves inversely to gold, climbed back towards its highest level in about 20 years hit on Friday.
“While gold prices remain below $1,753/oz it seems a move down to $1,720 is on the cards. Although there is some support around $1,730 … given the bearish trend overall, any upside is likely to be a retracement, at best,” City Index senior market analyst Matt Simpson.
U.S. jobs data released last week showed a healthy sign, which eased some recession fears, raising expectations of more monetary tightening from the U.S. Federal Reserve.
“Gold has had a large move lower, and there comes a point where the market needs to pause for breath. And that’s what we are seeing on gold right now,” Simpson said.
Benchmark U.S. 10-year Treasury yields steadied near the previous session’s over one-week high, denting demand for bullion.
Investors now await U.S. Consumer Price Index (CPI), due this Wednesday, which is expected to get closer to 9%, a fresh four-decade high.
In other precious metals, silver edged up 0.11%. Platinum fell 0.88%, while palladium dived 3.65%.
