Gold trading continued under pressure as 10 -year U.S. treasury yields continued to rise higher and supported the strengthening U.S. dollar.
During the Asian session, the precious metal traded down 0.4% to around $ 1,941 an ounce, while gold futures hovered at $ 1,944 an ounce.
While Russia’s attacks on Ukraine are still ongoing, market players are more focused on the action the Federal Reserve (Fed) will take this week.
What is in question in the minds of investors is how much the value of rates will be raised by the US central bank. Some expect the Fed to raise rates by 0.25% and more aggressively 0.50% to deal with rising inflation.
Investors will also be scrutinizing forecasts for rate hikes, inflation and economic growth given the new uncertainties posed by the Russo-Ukrainian war.
Expectations of interest rate hikes by the central bank have pushed US bond yields to more than 2 -year highs thus weakening the movement against the yellow gold metal.
Meanwhile, hopes for a diplomatic deal between Russia and Ukraine ahead of the resumption of peace talks today, also curbed safe-haven demand for gold.
