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Gold edged lower on Monday as an uptick in U.S. bond yields and a stronger dollar dented bullion’s appeal.

Spot gold eased 0.3 percent to $1,762.03 per ounce, while U.S. gold futures were down 0.3 percent at $1,762.35.

The U.S. dollar climbed against its major rivals and short U.S. Treasury yields resumed their upward trend after data showed U.S. retail sales unexpectedly increased in September.

Rising energy prices also added to worries about inflation and stoked bets that the Federal Reserve may need to act faster to normalize policy. Fed funds futures are now fully pricing in a rate hike by September 2022.

Elsewhere, Bank of England Governor Andrew Bailey sent a fresh signal that the British central bank is gearing up to raise interest rates for the first time since the onset of the coronavirus crisis as inflation risks mount.

Market participants also weighed up data showing China’s economy grew slower than expected in the third quarter, hurt by power shortages, supply bottlenecks, sporadic Covid-19 outbreaks and major wobbles in the property sector.

China’s GDP expanded 4.9 percent year-on-year in the third quarter of 2021, the National Bureau of Statistics said – missing forecasts for 5.2 percent and down sharply from 7.9 percent in the three months prior.

The bureau also said that China’s industrial production gained an annual 3.1 percent in the month, missing forecasts for 4.5 percent and slowing from 5.1 percent in August.


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