Gold slipped 0.2% to around $4,368 an ounce on Monday as expectations for further US interest-rate rises and a firm dollar continued to weigh on the non-yielding metal, although prices recovered from earlier lows near $4,340.
The Federal Reserve raised rates by 25 basis points last week to 3.75%-4.00% and signalled at least one more increase this year, keeping upward pressure on bond yields and the dollar.
At current levels, the price of gold remains below its 20-day exponential moving average near $4,367 after struggling to sustain a recovery.
Higher real yields have traditionally been particularly troublesome for bullion, but that relationship is showing signs of weakening.
US 10-year real yields reached 2.63% on Friday, their highest level in more than 20 years, while gold-backed ETF holdings have continued to recover.
The market remains cautious about government debt and fiscal sustainability, and continuation or escalation may see investors moving to higher long-term yields as a deeper risk signal rather than simply another trading opportunity.
Lower oil prices are meanwhile offering some relief by potentially easing inflation concerns and, in turn, potentially reducing immediate pressures for more aggressive monetary tightening.
Brent crude was around $102 a barrel as Saudi supply conditions improved, somewhat.
Longer term, central-bank demand remains an important support.
European broker Bernstein this morning cut its 2030 gold forecast to $5,600 an ounce, from $6,100, amidst shifting expectations on interest rates, though its analysts note reserve diversification by central banks could continue to underpin gold prices even as real yields rise.
