Rising yields dampen gold prices as traders look to US data

Gold prices retreated on Monday as US Treasury yields firmed, while investors' attention turned to economic data for clues on the Federal Reserve's interest rate trajectory in 2025 after the central bank flagged a slower pace of rate cuts this year, reports Reuters.

Spot gold fell 0.2 per cent to $2,633.03 per ounce by 0932 GMT. US gold futures eased 0.4 per cent to $2,645.20.

"Gold is trading with a slightly weak momentum as yields are trading higher and traders look ahead to a series of US economic data releases this week to assess Fed's stance on rate cuts," said Jigar Trivedi, senior analyst at Reliance Securities.

The US jobs report on Friday will help shape expectations of the Fed's rate path this year after the US central bank rattled markets last month by reducing its projected cuts in the face of stubborn inflation.

Market watchers are also looking to job openings data on Tuesday, ADP employment numbers and the minutes from the Fed's most recent policy meeting on Wednesday for further insights.

Spot silver gained 0.4 per cent to $29.73 per ounce, platinum rose 0.7 per cent to $945.15, and palladium eased 0.1 per cent to $921.50.