Gold falls on dollar gains and US bond yields

Gold prices fell on Monday amid a rally in the dollar and Treasury yields as investors braced for US economic data this week that could influence future Fed policy. Federal

* Spot gold XAU= was down 0.7% at $1,913.44 an ounce at 1516 GMT. On Friday, the metal rallied to its highest level since April 2022.

* US GCv1 gold futures lost 0.7% to $1,914.60 an ounce.

* “Bond yields have risen slightly and the dollar has been rising this morning, which is putting pressure on gold,” said Bob Haberkorn, senior market strategist at RJO Futures.

* “Many traders will start to increase their buying when we see some support around $1,950 to keep an eye on the inevitable move towards $2,000,” he estimated.

* The .DXY dollar index added 0.2% compared to a basket of currency pairs, making bullion less attractive to non-currency buyers.

* Investors will be watching fourth-quarter US GDP growth on Thursday and personal spending data on Friday, ahead of the January 31-February 1 policy meeting.

* Gold, which does not earn interest, typically performs well in a lower interest rate environment.

* In other precious metals, XAG= spot silver fell 4.6% to $22.83 an ounce; XPT= platinum was down 0.6% at $1,037.00; and palladium XPD= fell 0.3% to $1,722.25.

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