GOLD prices slipped more than 1 per cent on Monday (Apr 8) as the US dollar and Treasury yields held firm after strong US data heightened doubts on whether the Federal Reserve would deliver three interest rate cuts this year.
Spot gold was down 1.1 per cent at US$2,305.09 per ounce, as at 0109 GMT, after hitting a record high of US$2,330.06 on Friday.
US gold futures edged 0.9 per cent lower to US$2,324.20 per ounce.
The US dollar gained 0.1 per cent against its rivals, making gold less attractive for other currency holders, while benchmark US 10-year Treasury yields also edged higher.
US job growth blew past expectations in March and wages increased at a steady clip, suggesting the economy ended the first quarter on solid ground and potentially delaying anticipated Federal Reserve interest rate cuts this year.
Minneapolis Fed president Neel Kashkari said last week that at the US central bank’s meeting last month, he pencilled in two interest rate cuts this year but if inflation continues to stall, none may be required by year-end.
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Higher interest rates reduce the appeal of holding non-yielding gold.
Meanwhile, physical gold demand in India remained tepid last week as a blistering rally in domestic prices put off buyers, while premiums held firm in top consumer China.
Asian markets aim to kick off a week jam-packed with top-tier local economic indicators and policy decisions in optimistic mood
US Treasury Secretary Janet Yellen raised her concerns about China’s excess industrial capacity with Chinese Premier Li Qiang.
Spot silver fell 1.9 per cent at US$26.95 per ounce, platinum edged 0.5 per cent lower to US$922.80 and palladium lost 1.3 per cent to US$989.75. REUTERS