Gold Prices Steady on Modest Gains Amid Falling US Bond Yields
Gold (XAU/USD) started the new week on a positive note and held on to modest gains through the early European session. The US Treasury bond yields fell to their lowest since October amid bets that the Federal Reserve (Fed) will cut borrowing costs again in December. Additionally, political turmoil in South Korea, geopolitical tensions, and trade war concerns provided some support to the safe-haven XAU/USD.
Investors now seem convinced that the US central bank will take a less dovish stance amid expectations that US President-elect Donald Trump’s expansionary policies will boost inflation. This helped the US Dollar (USD) to capitalize on Friday’s uptick from near one-month lows and kept non-yielding Gold prices below the $2,650-2,655 supply zone. Traders also seemed reluctant to anticipate this week’s US consumer inflation figures.
Source: FXStreet