MTECHTIPS;-Gold Prices Fall as Yields Make Strong Gains

MTECHTIPS;-Gold Prices Fall as Yields Make Strong Gains

MTECHTIPS-Gold prices fell on Monday as fading tensions on the Korean Peninsula suppressed safe-haven demand while a sharp uptick in the dollar curbed sentiment on the precious metal ahead of the Federal Reserve’s two-day meeting slated for Tuesday. Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell by $13.67, or 1.03%, to $1,311.51 a troy ounce. Fresh on the heels of a two-week losing streak, gold prices started the week on the back foot as investors appeared to unwind some of their long positions in the precious metal following strong gains in both the greenback and treasury yields. Treasury yields rose sharply, pushing the dollar higher, amid expectations the Federal Reserve will announce that it will begin unwinding its $4.5 tn bond portfolio and reaffirm its outlook that an additional rate hike remains appropriate this year, when it concludes its two-day meeting policy meeting on Wednesday. “What is more, bond yields in the U.S. have increased significantly of late, which makes gold less attractive as an alternative investment,” Commerzbank (DE: CBKG) says. “Presumably this is also why Friday saw the second consecutive daily outflow from gold ETFs [

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