From Gina Lee
Investing.com – Gold fell in Asia Monday morning on rising US Treasury yields and a stronger dollar.
fell 0.38% to $ 1738.25 by 12:43 a.m. ET (4:43 a.m. GMT)
“Stronger than expected data suggests that inflation will rise faster than expected in the coming months, causing real returns to rise and putting pressure on gold,” DailyFX strategist Margaret Yang told Reuters.
Positive data from the US has also led investors to turn away from the yellow metal of safe haven. March, released on Friday, recorded the highest annual increase in nine and a half years. More data will be released later this week, including Tuesday, Wednesday Fed and Thursday data.
The chairman of the US Federal Reserve said in an interview on Sunday that the US economy is at a “turning point”. While hoping inflation and attitudes would accelerate in the months ahead, he warned of the dangers if a hasty reopening results in a sustained spike in Covid19 cases.
Powell will also speak at the Economic Club of Washington on Wednesday.
“Asia Pacific markets were expected to open higher, but they will trade lower this morning, increasing demand for safe assets, and the dollar is winning this race and putting further pressure on gold,” added Yang added.
The dollar, which normally moves in reverse to gold, gained on Monday.
For other precious metals, silver fell 0.4%, palladium 0.3% and platinum 0.6%.
Disclaimer: Fusion Media would like to remind you that the information contained on this website is not necessarily real-time or accurate. All CFDs (stocks, indices, futures) and forex prices are not provided by exchanges, but by market makers. Therefore, prices may not be accurate and may differ from the actual market price. This means that the prices are indicative and not suitable for trading purposes. Therefore, Fusion Media is not responsible for any trading losses you may incur as a result of using this data.
Fusion Media, or anyone involved with Fusion Media, assumes no liability for any loss or damage caused by reliance on the information contained on this website, such as data, offers, charts, and buy / sell signals. Please inform yourself comprehensively about the risks and costs associated with trading in the financial markets. This is one of the riskiest forms of investment possible.