Gold futures finished lower on Monday, as the rising US treasury yields with the good three-year note auction and ahead of key data releases this week, increases opportunity cost of the non-yielding bullion. Increasing yields threaten gold's appeal as an inflation hedge as the yellow metal produce no dividend or yield. Meanwhile, the market eyed for more cues ahead to key US inflation and retail sales data to gauge the health of the economy.
Gold futures for June dipped by 0.7% to settle at $1,732.70 an ounce on the Comex division of the New York Mercantile. Spot gold fell 0.6 % to $1,732.14 per ounce.