WASHINGTON (dpa-AFX) - Gold prices edged lower on Monday as a result of rising U.S. Treasury yields.
Spot gold dipped 0.2 percent to $2,614.26 per ounce in European trade while U.S. gold futures were down 0.3 percent at $2,624.69.
Markets closely monitored geopolitical developments and awaited further clarity regarding the U.S. Federal Reserve's monetary policy direction in 2025 under the Trump administration.
The dollar index was marginally higher, with the Japanese yen holding around five-month lows as 2024, which was characterized by diverging central bank outlooks, draws to a close.
The dollar was underpinned by rising U.S. yields due to economic uncertainty and increased inflation expectations.
Federal Reserve Chair Jerome Powell said earlier this month that more reductions in borrowing costs now hinge on further progress in lowering stubbornly high inflation, prompting traders to dial back estimates of how far borrowing costs are likely to fall over the coming year.
Traders expect U.S. President-elect Donald Trump's policies of looser regulation, tax cuts, tariff hikes and tighter immigration to be both pro-growth and inflationary.
In economic releases, U.S. Chicago PMI for December, pending home sales for November and U.S. Dallas Fed manufacturing index for December are slated for release in the New York session.
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