Gold was down on Tuesday morning in Asia. A strengthening dollar and rising U.S. Treasury yields impacted demand for the U.S. currency-priced yellow metal, which is set for a second consecutive monthly loss for the first time since March 2021.
Gold futures edged up 0.17% to $1,854.20 by 11:13 PM ET (3:13 AM GMT) and are down about 2.6% in the month to date, the most since September 2021. The dollar, which normally moves inversely to gold, was up on Tuesday.
Benchmark U.S. 10-year Treasury yields climbed on Tuesday, with bond markets in the U.S. closed during the previous session for a holiday.
The U.S. Federal Reserve should be prepared to raise interest rates by a half percentage point at every meeting from now on until inflation is decisively curbed, Fed Governor Christopher Waller said on Monday. Waller’s colleagues, New York Fed President John Williams, and St. Louis Fed President James Bullard will speak at separate events Wednesday. Cleveland Fed President Loretta Mester will discuss the economic outlook a day later.
The Fed is set to start shrinking its $8.9 trillion balance sheet and release its Beige Book on Wednesday. U.S. President Joe Biden will also meet Fed Chairman Jerome Powell later in the day.
On the data front, the U.S. jobs report, including non-farm payrolls, is due on Friday. Investors also digested Chinese data released earlier in the day showed that May 2022’s manufacturing purchasing managers’ index (PMI) was 49.6, while the non-manufacturing PMI was 47.8.
In other precious metals, silver fell 0.7% and has fallen about 4.1% in the month to date. Platinum fell 0.8% but is still set for its first monthly gain in three of about 2.1%. Palladium eased 0.2% to $2,029.61 and has fallen about 12.6% this month, the most since November 2021.