Analyst expects 3,050oz price target for gold by end of year
US nonfarm payrolls report due on Friday
US 10year Treasury yields at over oneweek high

Jan 6 Reuters Gold prices fell on Monday as U.S. Treasury yields rose, while the Federal Reserve39;s recent hint at a slower pace of rate cuts in 2025 kept investors keenly awaiting a slew of economic data due this week to shed more light on that view.

Spot gold fell 0.3 to 2,632.47 per ounce by 955 a.m. ET 1455 GMT. U.S. gold futures were down 0.4 at 2,644.50.

Bond yields are back up again, placing pressure on gold, said Nitesh Shah, commodity strategist at WisdomTree.

Yield on the 10year U.S. Treasury Note rose to an over oneweek high, making nonyielding gold less attractive.

We expect a 3,050oz by the end of the year based on a 39;consensus39; economic view of dollar depreciation and falling bond yields. Further escalation in tension in the Middle East could drive upside risk to our forecast, Shah said.

The Fed39;s latest projections in December implied a shift to a more cautious pace of rate cuts this year, with the majority of the policymakers expressing concern that inflation could reignite.

The central bank may need to keep rates higher for longer to address persistent inflation, which remains above its 2 target.

U.S. Presidentelect Donald Trump takes office on Jan. 20, and his proposed tariffs and protectionist policies are expected to stoke further inflation.

There39;s speculation that Trump is going…