Gold declines in front of the rise in the yield of US Treasury bills, but remains above $1750

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Gold retreated from its highest level in more than a week, today, Monday, as US Treasury yields rose and the dollar compensated some of its losses, but it remained above the technically important $1750 support level, supported by market fears of inflation.

Spot gold fell 0.5% to $1,751.24 an ounce, after hitting its highest level since September 23, hitting $1,765.54 an ounce earlier on Monday. US gold futures fell 0.4% to $1,751.80.

With gold retreating from Friday’s highs as the dollar found some support, the metal may benefit from investors’ continued concern about China’s Evergrande crisis and higher energy prices given the risks to global economic growth, said Ricardo Evangelista, chief analyst at ActivTrades.

He added that the yellow metal will follow the pace of the US bond yields, while risks will continue to determine the direction in the short term regarding the demand for the metal as a safe haven, ahead of the US jobs report expected to be released on Friday.

Reducing stimulus and increasing interest rates tend to push up government bond yields, increasing the cost of holding non-yielding gold.

As for other precious metals, silver fell 0.5% to $ 22.41 an ounce, platinum fell 1.7% to $ 955.05 and palladium fell 1.4 percent to $ 1891.36.

The article: Gold retreats against the rise in the yield of US Treasury bills.. but remains above $1750, which was written in Al Borsa newspaper.