Ella 
Gold prices rose slightly to around $1,930 an ounce, recovering from last week’s decline. The dollar’s retreat supported gold prices, possibly because the probability of the Federal Reserve keeping interest rates unchanged in September increased.
However, the 10-year U.S. Treasury yield improved to 4.3% and is currently up 0.84%. The U.S. dollar index extended intraday losses in Asia on Monday, even as U.S. Treasury yields rose. Spot prices moved lower to around 104.60.
The dollar continues to hold firm, benefiting from upbeat U.S. economic data. Investors are likely to focus on U.S. consumer price index (CPI) data for August due out on Wednesday. The data will shed further light on the inflation situation in the United States.
Investors may expect the Fed to raise interest rates by 25 basis points at its November or December meeting. At the same time, the Federal Reserve is expected to keep interest rates high for an extended period of time. This hawkish tone has the potential to provide further support for precious metals.
U.S. Treasury Secretary Janet Yellen spoke on Sunday after attending the G20 summit. Yellen has expressed increasing confidence in the United States’ ability to curb inflation without damaging the job market. Yellen also said: “Every indicator of inflation is on a downward path.”
In addition, Chicago Fed President Austan Goolsbee also mentioned that the goal of the U.S. Federal Reserve (Fed) is to guide the economy onto a “golden path.” This path represents a scenario in which inflation falls without triggering a recession, a challenging balance that central banks often pursue to maintain economic stability and growth.
China’s consumer price index (CPI) for August, released on Saturday, was lower than expected, which could weaken gold’s moves. The report showed the index rose 0.1% on an annual basis, missing market expectations of 0.2%. However, consumer prices improved compared to -0.3% last month.
In addition, Chinese real estate developer Country Garden will hold a new round of voting on extending the maturity date of onshore bonds. Creditors will vote on Monday whether to extend the terms of several debt obligations after Country Garden narrowly avoided default twice earlier this month.
The Chinese government is working hard to implement the necessary monetary and fiscal measures to achieve this year’s gross domestic product (GDP) growth target of 5%.
