Rising dollar drags gold down as Treasury yields remain near highest level
With the dollar keeping afloat and ten-year yields remaining near their highest level in over one year, gold prices fell in Asian trade on Monday.
Gold futures fell 0.09% at $1,740.15 while the dollar improved on Monday.
Two, five, and seven-year debt auctions in the U.S. treasury later in the week are anticipated among investors. Following the Fed’s announcement last Friday, big US banks will have to resume holding a temporary break from the COVID-19 regulation due to expire in March 2021 an additional layer of loss-absorbing capital against US treasury and central bank deposits.
Meanwhile, Turkey’s sudden replacement of central bank governor Naci Agbal over the weekend pushed investors to the safe-haven dollar.
In other precious metals, palladium added up 0.2% while silver and platinum were on the losing end as they dropped 1.2% and 1.3%, respectively.