WASHINGTON (dpa-AFX) - After seeing some strength earlier in the day, the price of gold has moved modestly lower over the course of the trading session on Monday.
Gold for December delivery has edged down $5.80 or 0.1 percent to $4,156.50 an ounce after jumping as much 1.6 percent to a high of $4,198.90 an ounce.
With the downturn on the day, the price of the precious metal is extending the slump seen last week, when gold tumbled by 3.7 percent.
The modest weakness in the price of gold comes amid an increase in the value of the U.S. dollar, with the U.S. dollar index rising by 0.3 percent. Earlier in the day, the index reached its highest level in well over a year.
Gold has also moved to the downside amid a continued increase by treasury yields, which are extending a recent upward trend.
The yield on the benchmark ten-year note has surged by 7 basis points on the day, once again reaching its highest level since early 2002.
Yields continue to move higher despite the reduced expectations of another interest rate hike by the Federal Reserve following last week's inflation and employment data.
'That reinforces the idea that the long-end sell-off is being driven by more than monetary policy: elevated real yields, heavy borrowing and competition for capital continue to demand a higher term premium,' said Daniela Hathorn, Senior Market Analyst at Capital.com.
In U.S. economic news, a report released by the Institute for Supply Management showed a modest slowdown in the pace of growth in U.S. service sector activity in the month of September.
The ISM said its services PMI dipped to 54.9 in September after rising to 55.4 in August, although a reading above 50 still indicates growth. Economists had expected the index to edge down to 55.0.
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