Gold fell in Asia on Monday morning but was nearing a seven-week high during the previous session as the U.S. closed lower. The decline in treasury yields increased the demand for the safe-haven yellow metal.
Gold futures fell 0.12% to 11,778 during the 11:58 PM ET (3:58 AM GMT). The dollar, which normally moves against gold, was on edge on Thursday but was nearing a one-month low.
The U.S. The 10-year Treasury yield touched several weeks lower than the previous week.
Investors’ concerns about the rising COVID-19 numbers worldwide, with more than 3 million deaths worldwide due to the virus, also offset the loss of gold.
The COVID-19 vaccine roll and the spike of mutated COVID-19 strains are slower than expected. The weekend reports the first two cases of the modified N501Y COVID-19 mutation. Hong Kong Sunday banned flights to the city from India, Pakistan, and the Philippines.
Leading by the central bank, the European Central Bank will hand over its policy decision later this week, with the Reserve Bank of Australia releasing minutes from its latest meeting on Tuesday.
On the natural side, gold purchases in India are lower than high domestic prices, and the country continues to see an increase in lawsuits as COVID-19 regulations are renewed.
Meanwhile, China increased its gold imports, signaling that demand will increase. Commercial banks are also said to be authorized to import large quantities of gold into the country
Hedge funds and cash managers downgraded their positive positions on Comex Gold and raised their holdings on Friday contracts for the week until April 13. The Commodity Futures Trading Commission also said Friday.
Among other costly metals, silver was down 0.4% and platinum 0.5%, and palladium 0.5%.