Gold prices traded back stable after plunging to a nearly one-month low in the previous session, amid concerns the Federal Reserve (Fed) will begin discussing a reduction in its monetary policy easing.
In the Asian session, spot gold traded at $ 1,863 per ounce, having hit its lowest level since May 17 at $ 1,848 per ounce in the New York session. Gold futures were down $ 1,865 an ounce.
The decline in gold prices earlier, followed an increase in 10 -year US treasury bond yields which again touched the 1.50%level.
However, the rise exhibited by bond yields did not last long and this provided an opportunity for gold -precious metal trading to rebound.
According to analysts, the drastic surge in bond yields and the decline in the Dow Jones stock index reflect market confidence that the Federal Reserve (Fed) will begin talks on reducing bond purchases (tapering) this week.
Yet, at the same time there are also investors who are not convinced that the Fed is ready to talk about it.
The release of US retail sales data tonight, will be the main focus of the market while awaiting the outcome of the FOMC policy meeting on Wednesday.
