Gold Down as U.S. Dollar Strengthens over Interest Rate Hike Bets By

© Reuters

By Zhang Mengying

– Gold was down on US most Large foreign exchange dealersMonday morning in Asia, as the U.S. dollar strengthened over interest rate hike bets after healthy U.S. employment data.

Gold futures edged down 0.10% to $1,740.50 by 12:01 AM ET (4:01 AM GMT). The dollar, which normally moves inversely to gold, climbed back towards its highest level in about 20 years hit on Friday.

“While gold prices remain below $1,753/oz it seems a move down to $1,720 is on the cards. Although there is some support around $1,730 ... given the bearish trend overall, any upside is likely to be a retracement, at best,” City Index senior market analyst Matt Simpson.

U.S. jobs data released last week showed a healthy sign, which eased some recession fears, raising expectations of more monetary tightening from the U.S. Federal Reserve.

“Gold has had a large move lower, and there comes a point where the market needs to pause for breath. And that’s what we are seeing on gold right now,” Simpson said.

Benchmark U.S. 10-year Treasury yields steadied near the previous session’s over one-week high, denting demand for bullion.

Investors now await U.S. Consumer Price Index (CPI), due this Wednesday, which is expected to get closer to 9%, a fresh four-decade high.

In other precious metals, silver edged up 0.11%. Platinum fell 0.88%, while palladium dived 3.65%.

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