Gold slips as dollar, yields strengthen on robust U.S. jobs data

April 04, 2022 / 12:22 PM

Sharjah24 – Reuters: Gold prices fell on Monday as the dollar and Treasury yields firmed after a solid U.S. payrolls report raised expectations of aggressive rate hikes, although the Ukraine crisis and talks of more sanctions against Russia supported safe-haven demand.

A stronger dollar makes gold less attractive for other currency holders, while higher yields increase the opportunity cost of holding non-paying bullion.

Spot gold was down 0.3% at $1,917.55 per ounce by 0434 GMT. U.S. Gold futures slipped 0.2% to $1,920.30.

"While the conflict in Eastern Europe may be providing a modest tailwind to gold prices on dips, it is very clear now that the main pricing inputs into gold have swung to the impact of higher U.S. yields and a higher U.S. dollar," said OANDA senior analyst Jeffrey Halley.

The dollar made a firm start to the week while Treasury yields were also higher, as the monthly U.S. jobs report indicated a strong labor market and is likely to keep the Federal Reserve on track to maintain its hawkish policy stance.