02.10.202310:15:00UTC+00Gold Prices Decline As Yields Surge Ahead Of Powell's Speech

Gold refreshed six-month lows on Monday, as the dollar strengthened, and U.S. Treasury yields extended their upside on expectations that the Federal Reserve will stick to the 'higher for longer' stance in interest rates.

Spot gold fell 0.8 percent to $1,834.32 per ounce, while U.S. gold futures were down 0.9 percent at $1,850.05.

Bullion faced pressure from a buoyant dollar, which hovered near a 10-month high ahead of key U.S. manufacturing data and Fed Chair Jerome Powell's speech due later in the day.

Improved risk sentiment limited the dollar's upside after China reported improved manufacturing PMI and home price numbers, and U.S. lawmakers reached a last-minute deal to avert a government shutdown. China's new home prices rose slightly after declining for four months.

U.S. Treasury yields rose, with the 10-year yield hovering just below the latest 15-year high reached last week, as traders ponder over the chances of Fed rate hikes in November and December.

New York Fed President John Williams said the central bank may be done with rate rises but policymakers should keep rates high for "some time" to bring inflation down to the 2 percent goal.