Gold reversed course and fell below $2,000 on Monday, pressured by a stronger dollar and higher Treasury yields.
A strengthening dollar and rising bond yields, along with some profit-taking on recent gains, are putting pressure on gold, said Jim Wyckoff, a senior analyst at Kitco Metals.
The dollar rose 0.6%, making gold less attractive to buyers using other currencies, while US Treasury yields hit highs in more than two weeks.
Gold’s trend remains bullish and “I wouldn’t be surprised if gold hits a new high in the next few weeks,” Wyckoff added.
Gold had fallen 2% on Friday after the dollar rebounded, and Fed officials suggested the central bank could raise rates another 25 basis points next month.
However, economic data last week began to paint the picture of a US economy losing momentum, intensifying bets that the Fed’s next hike will be its last.
Among other precious metals, spot silver was down 1.7% at $24.92 an ounce; Platinum rose 0.4% to $1,049.03; and palladium was up 0.4% at $1,498.04.
Source: Ambito
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