Title: Gold Down as U.S. Dollar Strengthens over Interest Rate Hike Bets
Jul 11, 2022 12:01AM ET
Gold prices were down in Asia on Monday morning as the US dollar rose on bets of an interest rate hike following strong US jobs data.
Gold futures fell 0.10 percent to $1,740.50 an ounce by 12:01 AM ET as the dollar, which normally moves inversely to gold, climbed back to its highest level in about 20 years, reached on Friday.
Although gold remains below $1,753/oz, a decline to $1,720 seems imminent. While there is some support at $1,730, given the general downtrend, any upside move is likely to be a setback at best.
The US labour market data released last week was a good sign, allaying some recession fears and raising expectations of further monetary tightening by the Federal Reserve.
The gold price has had a big downward move and there comes a point when the market needs a breather. And that is exactly what we are seeing in gold at the moment.
US 10-year government bond yields have settled near the peak of the previous session, dampening demand for gold.
Investors are now waiting for the US Consumer Price Index (CPI) to be released on Wednesday, which is expected to move towards 9%, a new four-year high.
Among other precious metals, silver rose 0.11%. Platinum fell 0.88%, while palladium slipped 3.65%.