Gold backs off two-month high as US yields rebound

Gold prices fell in European trade on Monday away from two-week highs on profit-taking, while US 10-year treasury yields rebound.

Now investors await strong data on the future of US interest rates, and the Federal Reserve's last meeting minutes.

Gold Prices Today

Gold prices fell 0.4% to $1,973 an ounce, after closing flat on Friday away from a two-week high at $1,993. 

Gold prices rallied 2.2% last week, the first profit in three weeks following a stream of weak US data.

Such data hurt the odds of another US interest rate hike in December.

Investors now mostly expect the Fed to end the current cycle of policy tightening as markets focus on the likely timeline of the next interest rate cuts.

US Yields

US 10-year treasury yields rose 0.75% on Monday away from two-month lows at 4.381%, pressuring non-yielding assets.

Investors also await important data on the future of US interest rates, especially the Fed's minutes, scheduled for release tomorrow. 

The minutes will shed light on the inner thoughts of the Federal Reserve officials and the likely path ahead for monetary policies. 

The SPDR 

Gold holdings at the SPDR Gold Trust rose 12.98 tonnes on Friday, the largest such increase since March 2022.

Total holdings are now up to 883.43 tonnes, the highest since September 11.