ALBAWABA - Gold prices slipped below the key $2,000 level on Monday, pressured by a stronger U.S. dollar and higher Treasury yields.
CNBC said the decline coincided with investors looking for "cues on whether the market will see a ‘one and done’ rate hike by the U.S. Federal Reserve in May."
Gold gains on dollar pullback; investors weigh Fed rate hike prospects https://t.co/7K7ErxsSyq
— CNBC (@CNBC) April 17, 2023
Spot gold dropped by 0.6 percent at $1,990.58 per ounce by 10:30 a.m. EDT (14:30 GMT) after rising as much as 0.6 percent earlier in the session, according to CNBC.
U.S. gold futures fell 0.6 percent to $2,003.
"A stronger U.S. dollar and the rise in bond yields, along with some profit-taking from recent gains, are putting pressure on gold," said CNBC, quoting Jim Wyckoff, senior analyst at Kitco Metals.
CNBC said the U.S. dollar gained 0.6 percent, "making greenback-priced bullion less attractive for overseas buyers." It said U.S. benchmark Treasury yields climbed to a more than two-week high.
Treasury yields higher as market cements 25 basis point hike by Fed in May https://t.co/N5sGAx1wnh
— MarketWatch (@MarketWatch) April 17, 2023
The trend for gold is still up, and “I wouldn’t be surprised to see gold hit a new record high in the coming weeks,” added Wyckoff, according to CNBC.
Gold dropped 2% on Friday after the dollar bounced, with Fed Governor Christopher Waller and Atlanta Fed President Raphael Bostic suggesting the Fed could hike rates by another 25 basis points (bp) next month, according to CNBC.
