Gold falls as rising bond yields dent its appeal

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Gold falls as rising bond yields dent its appeal

Gold prices fell slightly on Monday as rising U.S. Treasury yields weighed on dollar-priced bullion, while investors closely monitored any potential escalation in the Middle East conflict.

FUNDAMENTALS

* Spot gold fell 0.3% to $2,381.36 an ounce by 0054 GMT. U.S. gold futures fell 0.7% to $2,395.80 an ounce.

* Benchmark 10-year U.S. Treasury yields rose slightly to 4.6475%, making yieldless bullion less attractive to investors.

* At least 34,097 Palestinians have been killed and 76,980 others injured during the ongoing Israeli military offensive on the Gaza Strip since October 7.

* Persistent inflation and higher interest rates for an extended period of time were cited as major risks to financial stability in the Federal Reserve’s latest survey of contacts with U.S. central banks.

* Progress in reducing inflation has “stalled” this year, Chicago Federal Reserve President Austan Goolsbee said, becoming the latest U.S. central banker to abandon his focus on the coming need for inflation. reductions in interest rates. * Higher interest rates reduce the attractiveness of holding gold without yield. * Copper, gold and other metals that have posted strong gains this year will see another rally, fueled by a robust Chinese demand outlook and macroeconomic uncertainties.

* Silver may have the power to hit the $30-an-ounce mark after its 26% surge in March-April on gold’s record run and copper’s strength, even as analysts say that the metal is ripe for technical correction.

* Spot silver fell 0.6% to $28.48 an ounce, platinum fell 0.1% to $930.72, while palladium was unchanged at $1,026.44 .

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