Gold failed to add significant gains due to stronger yields and profit taking. However, the trend ahead is still strong supported by high inflation.
The increase in gold prices slowed in the trading session on Monday (15/November) tonight, as it was hindered by the strengthening of US bond yields.
Nevertheless, the anticipation of rising inflation still keeps the precious metal at a high level.
The XAU/USD chart shows gold at $1,862.07, slipping slightly but still hovering around a five-month high.
Meanwhile, spot gold prices fell 0.3% to $1,858.70 an ounce at 15:02 GMT and gold futures prices on the Comex in New York were also down by the same percentage to $1,862.00.
The increase in US Treasury bond yields as much as 1.56% last week, resulted in increasing the cost of holding gold.
That's why gold failed to add to the price increase tonight.
From a technical standpoint, Saxo Bank's Ole Hansen warned that if gold prices fail to break above $1,870 today, there is a risk that it will push it below the $1,830-$1,835 area. This can disappoint investors.
According to Jim Wyckoff of Kitco Metals, the slight decline in gold prices was also caused by routine profit-taking by short-term traders in the futures market.
Even so, the uptrend is still quite strong.
In the last seven trading sessions, gold has racked up price gains reaching $100, its highest since mid-May.
The risk of a significant rise in inflation and the Fed's commitment to low interest rates increases the attractiveness of gold as an anti-inflation asset.
On Sunday, Minneapolis Fed President Neil Kashkari expressed his expectations for a rise in inflation in the next few months.
"Our calculations suggest that we will see a rather high rate of inflation in the coming months before it may start to cut again," Kashkari said in an interview with CBS News. "But I don't think we should overreact to temporary factors either. this, even though the pain is real."
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