Gold catches its breath...is it benefiting from inflation?

 Gold fell on Monday morning in Asia, recouping some losses after heavy selling during the previous session as US bond yields tumbled.

Gold futures were down 0.03% at $1,767.75 by 11:49 PM ET (3:49 AM GMT), to offset losses after dropping 1.6% on Friday.

The benchmark 10-year US Treasury yields also eased after rising to 1.5904% on Monday. Meanwhile, the dollar, which usually moves in the opposite direction to gold, rose on Monday. However, it is down 0.6% from last week's high of 20212, capping the yellow metal's losses.

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Although investors are betting that inflation could mean an earlier-than-expected rate hike by the US Federal Reserve, other central banks may be less aggressive during the tightening cycle. However, Bank of England Governor Andrew Bailey said on Sunday that the central bank is preparing to raise interest rates as inflation risks mount.

In another indicator of market sentiment, the SPDR Gold Trust (P:GLD) GLD (NYSE:GLD) fund said its holdings fell 0.3% to 980.1 tons on Friday from 982.72 tons the day before.

Meanwhile, data from China released earlier in the day showed that GDP grew 0.2% less-than-expected on a quarterly basis and 4.9% on an annual basis in the third quarter of 2021. The data also showed that industrial production grew by 3.1 percent. 4% YoY, Retail Sales grew 4.4% YoY in September and the unemployment rate was 4.9%.

For other precious metals, silver rose 0.2%. Platinum fell 0.4 percent to $ 1050.80, and palladium fell 0.7 percent.