Gold futures lost ground Monday, feeling pressure as the U.S. dollar and Treasury yields kicked off the week with a rise.
Gold for August delivery fell $14.30, or 0.7%, to $1,955.30 an ounce on Comex. July silver was down 19.7 cents, or 0.8%, at $23.55 an ounce.
July platinum was up $7.30, or 0.7% at $1,010.80 an ounce, while September palladium gained $22.50, or 1.6%, to $1,426 an ounce. July copper ticked up 0.1% to $3.732 a pound.
Gold ended last week on a down note after a much stronger-than-expected surge in May nonfarm payrolls saw the U.S. economy add 339,000 jobs versus Wall Street forecasts for a figure of around 190,000. That lifted the U.S. dollar and Treasury yields, as well as the overall appetite for stocks and other assets perceived as risky, taking away some of gold's luster, Waterer noted.
The ICE U.S. Dollar Index, a measure of the currency against a basket of six major rivals, rose 0.2%. The yield on the 2-year Treasury note rose 3.8 basis points to 4.55%, while the 10-year Treasury note yield was up 6.3 basis points at 3.753%.
A stronger dollar can be a negative for commodities priced in the unit, making them more expensive to users of other currencies. Higher Treasury yields raise the opportunity cost of holding assets that don't pay interest.
Source: Marketwatch
