Gold prices were lower on Tuesday as headwinds from rising US Treasury yields on prospects of further interest rate hikes offset support from a retreating dollar.
The Prayed Spot was down 0.1% at $1,836.12 an ounce by 10:06 GMT. The futures of Prayed in the United States they were stable at US$1,839.50.
The dollar, which has actually been the main driver of the price of the Prayedis significantly weaker, but much higher US Treasury yields offer offsetting strength, said Ross Norman, an independent analyst.
The dollar weakened, making bullion more attractive to buyers with other currencies, but benchmark 10-year US Treasury yields rose.
Rising interest rates and bond yields increase the opportunity cost of owning Prayedwhich does not pay interest.
Central banks around the world are aggressively seeking to raise interest rates to curb persistent inflation, and earlier in the session, Reserve Bank of Australia Governor Philip Lowe signaled further rate hikes, saying which expects inflation to reach 7% by the end of the year.
Also in the spotlight are statements from US Federal Reserve officials, expected later in the day, and two speakers from the Bank of England.
“There are contradictory factors at play that have prevented the metal from making a decisive move in one direction or the other”said Fawad Razaqzada, market analyst at City Index, adding that “the fact that (the Prayed) has not completely collapsed means that there are other factors that support it”.
Fed Chairman Jerome Powell will testify in Washington, DC, later this week.
Meanwhile, European stock markets extended gains, helped by chemical, mining and oil stocks, as opportunity buying emerged after last week’s sharp sell-off on recession fears.
Among others metals In precious metals, spot silver rose 0.5% to $21.68 an ounce, platinum gained 1.1% to $941.51 and palladium added 2.5% to $1,893.24.
Source: Elcomercio
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