Gold prices experienced a downward trend during Monday’s trading session, continuing the decline observed last Friday. Gold for January managed to recover slightly from its lowest points but still concluded the day with a decrease of $6.60 or 0.3 percent, settling at $2,638.40 per ounce.
This decline in gold prices coincided with an increase in treasury yields, notably with the yield on the benchmark ten-year note approaching its highest closing level in eight months.
Meanwhile, traders largely dismissed the impact of a decrease in the U.S. dollar’s value, which followed a report in the Washington Post suggesting that President-elect Donald Trump might be reconsidering his plans for tariffs. The report indicated that although Trump had earlier proposed broad tariffs ranging from 10 to 20 percent on all U.S. imports, his advisors are now contemplating tariffs that would target "critical imports" only and apply to all countries.
Despite Trump labeling the report as "fake news," the U.S. dollar index has regained some ground but still reflects a 0.7 percent decrease.
Turning to U.S. economic data, the Commerce Department released figures showing that new orders for manufactured goods in the U.S. fell slightly more than anticipated in November. Factory orders declined by 0.4 percent in November following an upwardly revised increase of 0.5 percent in October. Economists had predicted a decline of 0.3 percent, compared to the originally reported 0.2 percent rise for October.
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