Reuters

Gold slips to 1-1/2-month low as dollar, bond yields surge

Gold prices fell to a 1-1/2-month low on Tuesday, as firmer dollar and soaring U.S. Treasury yields dented the metal’s safe-haven appeal, amid more signals emerging that the U.S. Federal Reserve could be shifting towards tighter policy. The dollar index hit a more than one-month high, while the benchmark U.S. 10-year Treasury yields touched its highest level in over three months, increasing the opportunity cost for holding non-interest-bearing bullion. “Major central banks have hinted that this easy liquidity cannot stay in the system and they have to start tapering bond purchases since the COVID crisis is moderating across the globe, because of that gold prices are under pressure,” said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai.

LEAVE A REPLY

Please enter your comment!
Please enter your name here