Gold eases as firm dollar counters slight dip in US yields
Spot gold was down 0.1% at $1,720.96 per ounce by 1542 GMT, after falling to $1,706.70, its lowest since June 15.
US gold futures edged 0.1% decrease to $1,721.40 per ounce.
The strengthening dollar “is putting some pressure on gold. The $1,700 level may be perceived as some kind of key support level for gold prices,” stated Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
The dollar index hovered close to a four-week excessive, making gold costlier for holders of different currencies.
Offering some respite to gold, benchmark US Treasury yields eased from a one-year excessive hit final week, whereas US shares dipped after sturdy beneficial properties on Monday.
“The main dilemma right now for the gold bulls is the rising short-term US Treasury yields,” stated Bob Haberkorn, senior market strategist at RJO Futures.
“Despite the US Federal Reserve being very accommodative with stimulus, with low rates for the extended period of time, in the short term we had to deal with these rising short-term rates.”
While gold is taken into account a protect in opposition to inflation, increased yields threaten that standing as they improve the chance value of holding bullion.
Market members stored an in depth watch on the $1.9 trillion stimulus invoice, which will probably be debated in the US Senate this week.
Silver fell 0.6% to $26.33 an oz., having earlier dipped to a greater than one-month low.
Palladium was up 0.4% at $2,358.68 an oz., whereas platinum eased 0.2% to $1,182.94.
