Gold declines as bond yields rise and the dollar strengthens

Gold prices fell slightly today, as the rise in US Treasury bond yields and the strength of the dollar overshadowed optimism about reaching a peace agreement between the United States and Iran.

Gold in spot transactions fell 0.3 percent to $4,467.59 per ounce by 02:33 GMT.

In the previous session, gold recorded its lowest level since March 30.

US gold futures for June delivery fell 0.9 percent to $4,471.10.

Tim Waterer, chief market analyst at KCM Trade, said: “Gold is losing momentum somewhat in light of the rise in yields, and the dollar, which is witnessing a recovery thanks to the shift towards tightening interest rate expectations.”

The dollar is hovering around a six-week high, making gold priced in the US currency more expensive for holders of other currencies.

Benchmark 10-year US Treasury bond yields stabilized at the highest level in more than a year, raising the opportunity cost of holding non-yielding gold.

As for other precious metals, silver fell in spot transactions 0.8 percent to $73.22 per ounce, platinum fell 0.5 percent to $1,912.67, while palladium rose 0.2 percent to $1,356.32.