Gold falls below $ 1,800 on firm dollar and US bond yields.

Gold fell below $ 1,800 on Tuesday as the dollar rose and yields on U.S. government debt, with higher expectations that U.S. interest rates will rise in 2022 following the Federal Reserve chairman’s nomination to a new period.

At 1022 GMT, spot gold was down 0.4% to $ 1,797.16 an ounce, while US gold futures were down 0.5% to $ 1,797.70.

The dollar index hit a new 16-month high and the return on US Treasury notes firmed up after Jerome Powell was nominated for a second term at the helm of the Fed, raising confidence in a rise in U.S. Treasury costs. credit in the United States during 2022.

While gold is considered a hedge against inflation and other uncertainties, a likely rate hike to curb rising consumer prices would increase the opportunity cost of owning non-interest bearing bullion.

However, it is “too early to rule out gold,” said Ross Norman, an independent analyst.

“Inflation still has legs to run and again there are restrictions due to COVID-19 in Europe. Nonetheless, the onus is on the bulls to test their point and gain support, or else the metal could go down again.”He added.

The increase in COVID-19 cases in various parts of Europe, which is generating new restrictions, has investors on the edge.

In other precious metals, spot silver was down 1.1% at US $ 23.89 per ounce; platinum was down 0.8% at $ 1,003.59; and palladium lost 0.4% to $ 1,946.38.