By Gina Lee
Investing.com – Gold was lower in Asia Monday morning. US Treasury yields rose above expectations of a US rate hike, while the yellow metal continued to be dented as a safe haven asset.
down 0.25% to $1,980.10 by 00:49 ET (4:49 GMT).
“A key reason is rising government bond yields. Also, the market appears to be pricing in Wednesday’s Federal Reserve meeting, which may start the tightening cycle. So this is a negative for gold,” DailyFX strategist Das Margaret Yang told Reuters.
“Given that both sides are ready to talk, I think the worst of the Ukraine crisis is probably behind us. Gold prices are unlikely to break past last week’s previous high or a record high anytime soon will achieve.”
US Assistant Secretary of State Wendy Sherman said Sunday there could be signs that Russia was ready to begin extensive negotiations to end the conflict, even if fighting continues.
The benchmark climbed to near a one-month high on broad expectations that the Fed will hike rates when it announces later in the week.
In Asia-Pacific, the Bank of Japan is due to release its on Friday, while the Reserve Bank of Australia is due to release on Tuesday.
The Bank of England will also give its verdict on Thursday.
Among the other precious metals, palladium fell 3.9% to $2,705.18 an ounce. It hit a record high of $3,440.76 in the previous week amid worries over supply disruptions by leading producer Russia.
Russian mining giant Nornickel has managed to secure alternative routes for its palladium supplies but logistical problems remain. Silver fell 0.9% and platinum 1.9%.
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https://www.investing.com/news/commodities-news/gold-down-us-treasury-yields-up-as-investors-await-interest-rate-hike-2783714 Gold down, US Treasuries higher as investors wait for Investing.com rate hike