(Bloomberg) — Gold extended losses, heading for the biggest decline in six weeks as Treasury yields pushed higher.
Risk sentiment on the first trading day of the year lifted Treasury yields and U.S. equities futures, while the greenback strengthened. Volumes remain thin as major markets including Australia, Japan and China are shut for holidays.
Bullion fell 3.6% last year in its biggest annual decline since 2015 as central banks started to dial back pandemic-era stimulus to fight inflation. Spot gold fell 1.1% to $1,808.88 an ounce at 9:15 a.m in New York. A close at that price would mark the biggest drop since Nov. 22.
With major markets all closed for holidays, investors will look ahead to the release of minutes from the Federal Reserve’s latest meeting on Wednesday and the U.S. nonfarm payrolls figures due Friday.
“In light of the shift toward a quicker tapering process and an expected three rate hikes in 2022, the jobs report will be the key market risk event,” said Yeap Jun Rong, a strategist at IG Asia Pte. Any underperformance in the upcoming jobs report “may potentially cool some of the rat- hike bets, which may translate into further strength for gold prices,” he said.
In base metals, copper futures for March delivery fell on the Comex. The London Metal Exchange is closed for a holiday.
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