Rising U.S. Treasury yields and dollar push gold down
The firming dollar and the surging U.S. Treasury yields caused the gold to go down on Monday trade in Asia.
Gold futures lowered 0.38% at $1738.25. Encouraging U.S. data released on Friday resulted in a big risk appetite among investors, turning away from the yellow metal.
The producer price index for the month of March marked the highest annual rise in nine-and-a-half years. More data are anticipated to be released this week, including consumer price index, retail sales, industrial output figures, and the Fed’s Beige Book.
All other precious metals joined the yellow metal on a slump as silver declined 0.4%, palladium lowered 0.3% and platinum lost 0.6%.
Jerome Powell, U.S. Federal Reserve Chair, said in an interview on Sunday that the U.S. economy is at an “inflection point”. Furthermore, Powell hoped inflation and employment in the coming months would accelerate and warned of the risks if a rapid reopening leads to a further rise in coronavirus infections.