Gold fell lower as the U.S. dollar giant expanded its dominance in the market and U.S. treasury yields were higher.
The surge of the US dollar following news of US President Joe Biden nominating Jerome Powell as Chairman of the Federal Reserve (Fed) for a second term has pushed gold plunge closer to the $ 1,800 price level.
In the Asian session, the yellow metal traded around $ 1,808 an ounce, a two -week low. Gold futures hovered at $ 1,809 an ounce.
With this nomination, it further reinforces expectations that the central bank may raise interest rates earlier to curb rising inflation.
While US 10 -year bond yields also rose higher at 1.63%, as investors saw this result as positive for further normalization of monetary policy.
Gold has previously benefited from high inflation data and loose monetary policy, but any rate hike or tightening could result in a lack of attractiveness to the precious metal.
However, concerns over Covid-19 in Europe kept the precious metal from falling lower even as benefits as a safe-haven were more reaped by the USD.
