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Gold futures early Monday pulled back after concluding last week’s trade at their highest settlement in about three weeks.
Bullion’s move lower to start the week comes even as U.S. Treasury yields and the dollar are staging a modest pullback that would ordinarily offer a runway for gold prices.
The 10-year Treasury note
TMUBMUSD10Y,
was off 3.5 basis points at around 1.69%, compared with 1.729% on Friday, while one measure of the dollar was off 0.1%, as measured by the ICE U.S. Dollar Index
DXY,
Commodity experts speculated that gold prices were facing selling pressure, nonetheless, because investors were favoring equities as the rise in bond yields appeared to stabilize somewhat. The technology-heavy Nasdaq Composite Index
COMP,
was poised to rise on Monday.
“Gold and silver prices are lower in early U.S. trading Monday, pressured by some fresh chart-based selling and by global stock markets that are stable amid bond yields declining a bit to start the trading week,” wrote Jim Wyckoff, analyst at Kitco.com, in a daily note.
Against the backdrop, gold for April delivery
GCJ21,
GC00,
were off $10.80, or 0.6%, to trade at $1,730.90 an ounce, after prices saw a 1.3% weekly rise put in on Friday—the second weekly gain in a row. Prices on Friday also finished at the highest for a most-active contract finish since Feb. 25.
Meanwhile, May silver
SIK21,
fell 71 cents, or 2.7%, to trade at around $25.61 an ounce, following last week’s 1.5% weekly climb.
