New York: US gold futures for June delivery fell 0.16 % to $1,767.70 per ounce. Gold prices edged lower, pulled down by a rise in US Treasury yields, although a softer dollar capped losses and kept bullion near a seven-week peak scaled the previous session.
US gold futures for June delivery fell 0.16 % to $1,767.70 per ounce.
“The U.S. Treasury yield is up again and that is weighing on gold. It is compensating for the positive effect of the weaker U.S. dollar,” Quantitative Commodity Research analyst Peter Fertig said.
Benchmark 10-year U.S. Treasury yields rose above 1.6% after hitting a five-week low last week, increasing the opportunity cost of holding non-yielding bullion.
Gold, also considered a hedge against inflation, has shed over 6% this year as the higher yields have dulled the appeal of the non-yielding commodity. Bullion rose 25% last year.