Gold price extends its steady intraday descent, drops to fresh daily low around $2,630

Gold prices continued to decline on Monday, dropping to a fresh daily low of around $2,630 per ounce as the Federal Reserve’s hawkish stance supported elevated US Treasury yields, applying pressure on the non-yielding precious metal. This marked the second consecutive day of losses for gold, which had recently approached a three-week high of $2,665. A stronger US Manufacturing PMI and expectations of slower rate cuts by the Fed in 2025 further contributed to the bearish sentiment.

The US Dollar, while off its recent two-year peak, remained steady, reinforced by robust bond yields. San Francisco Fed President Mary Daly’s comments underscoring persistent inflation above the Fed’s 2% target also supported expectations of a cautious approach to rate reductions.

However, geopolitical tensions, including ongoing conflicts in Gaza, Ukraine, and concerns over Trump’s proposed trade tariffs, provided a measure of support for the safe-haven asset, limiting its downside. Investors are now eyeing key US macroeconomic data, including the Nonfarm Payrolls report, which could shape gold’s trajectory ahead of the Fed’s upcoming meeting.

https://www.fxstreet.com/news/gold-price-moves-away-from-multi-week-high-on-hawkish-fed-expectations-202501060502

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