By Gina Lee
Investing.com – Gold was up on Monday morning in Asia, hitting a more than one-week high. A weakening dollar continued to support the greenback-priced yellow metal, even as rising U.S. Treasury yields capped gains.
Gold futures rose 0.62% to $1,853.46 by 1:13 AM ET (5:13 AM GMT), with prices hitting their highest since May 12 at $1,853.55 earlier in the session.
“The jury is still out as to whether gold has weathered the storm in the medium term, or is it merely rallying in response to a sustained pullback by the U.S. dollar,” OANDA senior analyst Jeffrey Halley told Reuters.
The dollar, which normally moves inversely to gold, was down on Monday following its first weekly loss in nearly two months. Benchmark U.S. 10-year Treasury yields firmed after a three-session losing streak.
“Before turning structurally bullish, I would need to see gold hold onto its recent gains in the face of dollar strength, and not dollar weakness,” Halley said.
The U.S. Federal Reserve will also release the minutes from its latest meeting due on Wednesday. St. Louis Fed President James Bullard has already repeated his view during the past week that the U.S. Fed should hike interest rates to 3.5% in 2022 to control inflation quicker.
In Asia-Pacific, the Reserve Bank of New Zealand will hand down its policy decision on Wednesday, with the Bank of Korea’s decision following a day later.
In a reflection of sentiment, the SPDR Gold Trust said its holdings rose 0.69% to 1,063.43 tons on Friday from 1,056.18 tons the day before.
In other precious metals, silver gained 0.4%, platinum firmed 0.3% to $958.10, and palladium rose 0.7%.