Gold Dips Amid Rise In Dollar Index
Gold prices retreated on Monday and the dollar firmed up, as bond yields rose on growth and inflation expectations.
Spot gold dipped half a percent to $1,692.17 per ounce, after having hit its lowest since June 8 at $1,686.40 on Friday. U.S. gold futures were down 0.6 percent at $1,688.30.
The yield on the benchmark U.S. 10-year Treasuries hovered near one-year highs amid hopes of faster economic growth and higher inflation as investors reacted to positive economic data from the United States and China.
The U.S. Senate passage of a $1.9 trillion stimulus bill also put fresh pressure on Treasuries.
The relief package was passed with 50-49 votes from the Senate on Saturday, paving the way for $1,400 checks and jobless benefits.
The bill will be discussed in the House, with a vote due this week. Democrats want the bill to be cleared before March 14, when the current expanded unemployment benefits run out.
U.S. Treasury Secretary Janet Yellen dismissed inflationary pressures, saying that the true unemployment rate was around 10 percent and slack persisted in the labor market.
The dollar climbed to a three-month peak on expectations of a swifter economic recovery after data released on Friday showed jobs growth exceeded expectations in February.
Elsewhere, official data showed that China’s export growth jumped to the highest in over two decades.