21.06.202110:42:00UTC+00Gold Rebounds As Fed Jitters Ease

Gold prices rose on Monday, as a deepening slide in longer-term U.S. Treasury yields on the prospect of a less accommodative U.S. monetary policy boosted the allure of the non-yielding metal.

Spot gold rose over 1 percent to $1,782.50 per ounce, while U.S. gold futures were up 0.7 percent at $1,782.05.

Bullion prices slumped about 6 percent last week to mark their worst week since March 2020 after the U.S. Federal Reserve surprised markets with its hawkish statement.

The yellow metal is supported by a fall in yields, with benchmark U.S. Treasury yields falling to their lowest since March 3.

The U.S. dollar hovered just below the 10-week high touched on Friday versus major peers after St. Louis Fed President James Bullard said that inflation risks may force the Fed to raise rates as early as next year added to worries.

The rapid economic growth is bringing faster-than-expected inflation, which could warrant a liftoff in late 2022, Bullard said in an interview with CNBC on Friday.

Separately, Minneapolis Federal Reserve President Neel Kashkari said on Friday he wants to keep the Fed's benchmark short-term interest rate near zero at least through the end of 2023.