Gold prices fell on Monday on rising treasury yields and profit taking.
Gold for December delivery closed down US$10.60 to settle at US$1,988.60 per ounce.
The drop comes as investors take profits after safe-haven buying following the Oct.7 terror attacks by the Hamas militant group that murdered hundreds of Israeli citizens and Israel's subsequent invasion of Gaza. The metal rose to a three-month high last week as investors turned to the safety of the metal while the dollar weakened on expectations the Federal Reserve is turning dovish and will no longer raise interest rates to slow inflation.
"Gold is currently being weighed down by profit taking from speculators who recently bought a near record amount in the futures market," Saxo Bank noted.
Treasury yields rose, bearish for gold since it offers no interest. The US two-year note was last paying 4.912%, up 3.7 basis points, while the yield on the 10-year note was up 14.3 basis points to 4.662%.
The dollar edged higher, with the ICE dollar index last seen up 0.11 points to 105.13.
Source: MTN Newswires
