- Gold price hovers near fresh highs around $2,350 as the US Dollar remains sideways.
- US yields rally as traders pare Fed rate cut expectations.
- US inflation could guide market expectations for Fed rate cuts ahead.
Gold price (XAU/USD) records fresh all-time highs just above $2,350 on Monday. The rally in the precious metal remains unabated even though US Treasury yields increase after the robust United States Nonfarm Payrolls report for March shifted expectations for Federal Reserve (Fed) pivoting to rate cuts in the second half of this year.
10-year US Treasury yields rise to four-month highs near 4.45%. Generally, higher bond yields dampen Gold’s appeal as they increase the opportunity cost of holding investment in the latter. However, the case has not held up in the last few weeks.
Fed policymakers don’t see rate cuts as appropriate as robust labor market data could halt the progress in reducing…
