Gold steady despite rising yields and softer dollar

Gold prices held steady on Monday as rising US Treasury yields offset the impact of a weaker dollar and investors awaited economic data for clues on the Federal Reserve’s interest rate trajectory after it flagged a slower pace of cuts this year.

Spot gold was little changed at $2,641.19 per ounce by 1120 GMT. US gold futures were steady at $2,655.00.

“Gold is trading with a slightly weak momentum as yields are trading higher and traders look ahead to a series of US economic data releases this week to assess the Fed’s stance on rate cuts,” said Jigar Trivedi, senior analyst at Reliance Securities.

The US jobs report on Friday will help to shape expectations of the Fed’s rate path this year after the US central bank rattled markets last month by reducing its projected cuts given stubborn inflation.

Market watchers are also looking to job openings data on Tuesday, ADP employment numbers and the minutes from the Fed’s most recent policy meeting on Wednesday for further insights.

Goldman Sachs pushed back its gold price forecast of $3,000 per troy ounce to the second quarter of 2026 from December 2025, citing fewer Fed rate cuts.

“Opposing forces - lower speculative demand and structurally higher central bank buying - have effectively offset each other, keeping gold prices range-bound over the past few months,” Goldman said, adding that ETF demand has also grown less than expected.