Gold Slides with Higher Yields as Traders Eye Fed Policy, China
- US dollar extends gains on data showing economic strength
- Signs of ‘buying exhaustion’ in gold, TD strategist says
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Gold fell the most since October as Treasury yields and the dollar rose, with traders assessing fresh US economic data for cues on the Federal Reserve’s rate policy along with China’s relaxation of its Covid-Zero policies.
Stronger-than-expected US services data from November boosted chances that the Fed will keep interest rates higher for longer, which hurts bullion since it pays no interest. Treasury yields and the dollar extended gains after the Institute for Supply Management data was released Monday, sending bullion down as much as 1.6%.