Gold edges up as dollar trims gains
Gold prices rose on Monday as the dollar tapered off against most major rivals ahead of the Federal Reserve’s policy meeting.
Markets await important events this week, which include the Federal Reserve’s policy meeting this week, expected to maintain interest rates unchanged, with Fed Chair Jerome Powell talking later about the future of policies.
Markets also await US consumer prices data later this week, in addition to producer prices data.
Otherwise, the dollar index rose 0.2% as of 20:32 GMT to 105.1, with a session-high at 105.3, and a low at 104.9.
On trading, gold spot prices rose 0.2%, or $3.40 as of 20:33 GMT to $2328.5 an ounce.
Wall Street edges down as markets await crucial events
Most US stock indices fell mildly on Monday as markets await important events this week.
They include the Federal Reserve’s policy meeting this week, expected to maintain interest rates unchanged, with Fed Chair Jerome Powell talking later about the future of policies.
Markets also await US consumer prices data later this week, in addition to producer prices data.
On trading, Dow Jones fell 0.1% as of 15:44 GMT, or 64 points to 38,735, while S&P 500 fell 0.1%, or 5 points to 5342, as NASDAQ stabilized at 17,132.
Bitcoin moves in a negative zone as US yields rally
Bitcoin fell on Monday and resumed losses after a hiatus yesterday, as US treasury yields powered up.
Strong US payrolls data last Friday hurt the odds of multiple Fed rate cuts this year, in turn sinking the risk sentiment.
Prices
Bitcoin fell by $476 today at Bitstamp to $69,173, with a session-high at $69,773.
Bitcoin rose 0.5% on Sunday, the first profit in four days while still far from a two-week high at $71,949.
Bitcoin rose 2.8% last week, the third weekly profit in a month amid a new cash influx to bitcoin change funds in the US.
Crypto Market Value
Crypto market value fell by $30 billion on Monday to $2.658 trillion as both ethereum and bitcoin lost ground.
US Yields
US 10-year treasury yields rose 0.4% on Monday on track for the second straight profit, marking a week high at 4.453%, and underpinning the dollar.
The gains came after the US payrolls report showed the addition of 272 thousand new jobs last month, above estimates of 182 thousand.
Following the data, the odds of a Fed 0.25% interest rate cut in September fell to 47%, and the odds of such a cut in November tumbled to 61%.
Dollar hits four-week high on strong sentiment
Dollar rose in European trade on Monday against a basket of major rivals, extending gains for the second day and hitting a four-week high amid a strong buying sentiment.
Gains are boosted by a surge in US 10-year treasury yields following strong US employment data, which hurt the odds of multiple Fed rate cuts this year.
The Index
The dollar index rose 0.4% to 105.39, the highest since May 14, with a session-low at 104.93.
The index rallied by over 0.8% on Friday, the third profit in four days, away from two-month lows at 103.99.
The dollar was underpinned by stellar US payrolls data last week, which helped it snag a 0.3% profit last week, the second weekly profit in three weeks.
US Yields
US 10-year treasury yields rose 0.8% on Monday, the second profit in a row, marking a week high at 4.469% and underpinning the dollar.
The developments came after the US payrolls report showed the world’s largest economy added more jobs than expected in May.
The gains came after the US payrolls report showed the addition of 272 thousand new jobs last month, above estimates of 182 thousand.
Following the data, the odds of a Fed 0.25% interest rate cut in September fell to 47%, and the odds of such a cut in November tumbled to 61%.