XAU/USD falls to $4,153 as steady Treasury yields and a firm US Dollar offset softer US jobs data and Fed rate cut bets.
Gold prices declined 0.5% to $4,153 on Monday, pressured by steady US Treasury yields and a resilient US Dollar. The retreat followed a brief rebound after last week’s weaker-than-expected Nonfarm Payrolls report, which had fueled expectations of a less hawkish Federal Reserve.
Recent US economic data showed mixed signals, with the ISM Services PMI dipping to 54 from 54.5, while the Employment Index improved and producer prices eased. Despite downward revisions to April and May payrolls, traders trimmed Fed rate hike bets, pricing in 22 basis points of tightening for December.
The US Dollar Index (DXY) rose 0.03% to 100.90, while the 10-year Treasury yield held steady at 4.451%. Geopolitical developments, including US-Iran talks, took a backseat to macroeconomic factors weighing on bullion.