Precious metals extended their losses on Monday, with spot gold down nearly 3% intraday and spot silver falling 5%, according to Odaily, citing Jin10. The move came as higher oil prices intensified inflation concerns and strengthened market expectations that the Federal Reserve could raise rates again.
Tim Waterer, chief market analyst at KCM Trade, said the combination of elevated bond yields and higher oil prices has continued to weigh on gold. He added that uncertainty around the oil supply outlook has pushed crude prices up and brought inflation back into focus for investors.
Markets are now watching a run of U.S. labor and inflation releases due this week, including job openings data, the ADP employment report, the Personal Consumption Expenditures price index, and the nonfarm payrolls report. Waterer said stronger-than-expected inflation or employment figures could keep bond yields rising and add more pressure on gold.
Precious metals remained under pressure on Monday, with spot gold down nearly 3% intraday and spot silver tumbling 5%, according to Odaily, citing Jin10. The report said rising oil prices had heightened inflation concerns and reinforced expectations that the Federal Reserve may continue raising interest rates.
Tim Waterer, chief market analyst at KCM Trade, said, “The combination of high bond yields and high oil prices continues to put pressure on gold.” He added that uncertainty over the oil supply outlook had lifted oil prices and returned inflation to the center of investor attention.
Investors are set to watch a series of U.S. employment and inflation readings this week, including job openings data, the ADP employment report, the PCE inflation report, and the nonfarm payrolls report.
Waterer also said that if inflation or labor data comes in stronger than expected, it could continue to push bond yields higher and place further pressure on gold prices.
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