The strengthening of the US dollar continues to be a factor limiting the movement of gold prices after suffering a third consecutive weekly loss last week.
In the Asian session, gold traded slightly lower at $ 1,875 an ounce, weakened by the king of the US dollar which strengthened to a 20 -year high.
10 -year US bond yields also rose higher by touching their highest level since November 2018 thus putting additional pressure on the golden yellow metal.
Better -than -expected U.S. NFP jobs data in April continued to provide support for the dollar -dollar giant the greenback to strengthen against most major currencies.
This was compounded by the Federal Reserve’s (Fed) decision to raise interest rates by 50 basis points to 1.00% last week.
Gold tends to weaken when central banks raise rates or tighten their monetary policy.
However, concerns over the economic impact of Western sanctions on Russia and the closure of Covid in China, remain put demand for gold as a safe-haven.
These concerns fueled gloom in Asian stock markets today, which also followed a decline in U.S. stock futures following the Fed’s aggressive actions.
