Gold rises as US Treasury yields fall

Gold prices rose slightly on Monday, as US Treasury yields fell as investors awaited more US economic data to gauge how many interest rate cuts the Federal Reserve is likely to make in the near term.

Spot gold was up 0.3% at $2,667.97 an ounce by 0217 GMT, $17 below a record high hit last month. US gold futures were up 0.2% at $2,683.80.

10-year Treasury yields fell for a third straight session, making the non-yielding metal more attractive, according to Waiters.

“The game changer for gold prices is the easing of monetary policy in the US, as it paves the way for investment demand,” said Soni Kumari, commodities analyst at ANZ.

“Uncertainty surrounding the US elections and geopolitical tensions will also support gold going forward,” she added. Investors are awaiting US retail sales, industrial output and weekly jobless claims data due on Thursday for fresh clues on the monetary easing cycle.