Gold Moves Down From a Record High as U.S. Treasuries Recover From Last Week's Sell Off
Gold edged down from a record high early on Monday on profit taking and a rebounding appetite for U.S. treasuries after yields surged last week, even as the dollar fell to a three-year low.
Gold for June delivery was last seen down US$23.70 to US$3,220.90 per ounce.
The drop comes as the U.S. treasury markets begins to recover from last week's sell off as investors dumped U.S. securities, pushing prices down and raising yields, amid an uncertain outlook for the country's economy after a chaotic roll out of import tariffs from the Trump Administration, which ended the week with a 145% levy on imports from China, but exemptions for semiconductors and some other electronic items.
"Gold's record-breaking run extended ... last week, after a rout in the US bond market rout increased the focus on gold as a haven amid recession worries caused by Trump's erratic trade policies, heightened geopolitical tensions, and a softer dollar," Saxo Bank noted.
The yield on the U.S. 10-year note, which last week surged 50 basis points as the price of the security weakened, was last seen down 5.6 basis points to 4.438%. The U.S two-year note was down 4.0 points to 3.937%.
The dollar weakened again, falling the lowest since early 2022. The ICE dollar index was last seen down 0.23 points to 99.86.
Source : MT Newswires
