Nov 20 (Reuters) – Gold prices edged lower in early Asian trade on Monday after hitting a two-week high in the previous session, weighed down by a slight rise in U.S. Treasury yields, although expectations that U.S. interest rates have peaked underpinned bullion.
Spot gold XAU= was down 0.2% at $1,975.80 an ounce by 0043 GMT, having risen 2.2% last week. US gold futures GCcv1 were down 0.3% at $1,978.50.
Benchmark US 10-year Treasury yields US10YT=RR rose to 4.4647% after falling to a two-month low, reducing the appeal of non-interest-bearing gold. USD/
Data pointing to a slowdown in the US labour market and a weaker-than-expected consumer inflation report last week prompted market participants to revise their forecasts for future Federal Reserve action.
Lower rates put downward pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.
Meanwhile, the dollar =USD hovered near more than two-month lows against its rivals, making gold cheaper for holders of other currencies.
Investors are now looking ahead to the minutes of the Federal Reserve’s latest meeting for more clarity on the path of interest rates.
ASIA Asian shares got off to a slow start on Monday in a holiday-shortened week, with market valuations looking a little stretched as they have already priced in aggressive global policy easing for next year. MKTS/GLOB
In the Middle East, US and Israeli officials said a deal to free some of the hostages held in the besieged enclave was moving closer despite heavy fighting in Gaza.
Spot silver XAG= was up 0.6% at $23.83 an ounce, while platinum XPT= was flat at $892.58. Palladium XPD= was down 0.2% at $1,035.77 an ounce.
