Gold prices edged lower on Monday as last week’s strong U.S. employment report, which showed a surge in new jobs in March and slight drop in unemployment, boosted the dollar and yields.
Spot gold slid 0.2 percent to $1,725.40 per ounce, while U.S. gold futures were down 0.2 percent at $1,725.80.
The yield on the 30-year Treasury bond rose to 2.374 percent and the dollar strengthened as better-than-expected jobs data bolstered hopes for faster economic recovery and added to expectations that all the jobs lost during the pandemic could be recovered by the end of next year.
The U.S. manufacturing sector also saw robust growth in March, marking the highest reading since December 1983.
Amid the strong numbers, analysts say that it will become impossible for the Fed to avoid discussing tapering by the autumn.
Wednesday’s FOMC Meeting Minutes may offer insight as to what it will take for Fed policymakers to begin tightening sooner than expected.
The material has been provided by InstaForex Company – www.instaforex.com