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Gold prices were subdued on Monday as rising Treasury yields lifted the dollar to a near three-year peak against the Japanese yen.

Spot gold slipped 0.1 percent to $1,755.49 per ounce, while U.S. gold futures were down 0.1 percent at $1,755.15.

The dollar started the week on a positive footing and yields of the key U.S. 10-year benchmark note climbed past the 1.61 percent, as a soft U.S. jobs report did little to allay fears that the Federal Reserve will begin tapering its massive bond purchases as early as next month.

The focus this week will be on U.S. inflation and retail sales data, and minutes of the Federal Reserve’s last meeting which should confirm that a November tapering was discussed.

Elsewhere, there is speculation that the Bank of England may raise rates sooner than previously expected.

BoE policy maker Michael Saunders told The Telegraph on Saturday that inflationary surge “could become more persistent unless monetary policy responds.”

“I think it is appropriate that the markets have moved to pricing a significantly earlier path of tightening than they did previously,” Saunders said.

Saunders remarks came after a warning from Governor Andrew Bailey that inflation exceeding the BoE’s goal of 2 percent will be damaging the economy.


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