The yellow gold metal continued to decline lower on Tuesday after being weighed down by strengthening 10 -year U.S. bond yields and the king of the U.S. dollar.
In the Asian session, the precious metal traded at around $ 1,927 an ounce after falling more than 1.7% in the previous session.
The market is now expecting more aggressive action from the Federal Reserve (Fed) in raising interest rates, including a 50 basis point hike at the May FOMC meeting, and possibly the same at a subsequent meeting.
To reduce inflationary pressures, Fed policymakers have no choice but to raise interest rates and reduce stimulus in the economy.
The expectation has pushed 10 -year bond yields higher to hit its latest high since April 2019 at 2.55% before declining slightly in today’s Asian session.
This week, the main data that will affect the big movements in gold and US dollar trading are the publication of the US NFP employment report and consumer personal spending (PCE) data.
Meanwhile separately, news of the implementation of the new Covid-19 embargo measure in Shanghai earlier in the week unfortunately failed to benefit the yellow metal.
