Gold Drops on Treasury Yields Rise, Potential US Tariff to Ease Inflation
- ECB seen tightening at a slower rate than the Federal Reserve
- Bullion forms bearish death cross after three weeks of losses
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Gold edged lower as the dollar strengthened on bets the deteriorating growth outlook for the euro area will lead to slower monetary tightening there than in the US.
The greenback gained as much as 0.7% -- putting pressure on gold -- as the euro dropped amid weaker economic data in France. Concerns are growing about gas shortages because of cuts to supplies from Russia, with the fallout likely to restrain rate increases by the European Central Bank.