Gold declines for first session in three as dollar rebounds

Gold futures fell in Asian trade off July 13 highs for another session as the dollar index climbed off November 22 lows, while the US market shuts down for the official holiday declared by President Donald Trump in honor of late President George H.W. Bush. 

As of 04:59 GMT, gold futures due in February fell 0.53% to $1,240.00 an ounce off five-month highs, while the dollar index rose 0.16% to 97.12 off two-week lows. 

US three-year treasury bond yields rose over 5-year ones, while long-term yields fell, in a sign of potential recession and economic instability as investors fret over the unclear details regarding the US-China trade agreement reached recently between Presidents Donald Trump and Xi Jinping. 

Global stocks were thus hit by market uncertainty, in turn buoying gold as a safe haven to five-month highs yesterday before slipping today on profit-taking. 

A scheduled Congress testimony by Fed Chair Jerome Powell was delayed to today after President Donald Trump declared Tuesday an official holiday in honor of late President George H.W Bush. 

Later this week, Powell will speak about the economy and rural America at the Housing Assistance Council's annual event, in Washington DC, while the payrolls report is expected to show no change in the unemployment rate at 3.7%.