Gold at its lowest level in two weeks, affected by US bond yields and the dollar

On Wednesday, gold prices fell to their lowest in nearly two weeks, weighed down by persistently higher US bond yields and the dollar.

By 0741 GMT, spot gold fell 0.4 percent to $ 1941.40 an ounce, and US gold futures fell 0.7 percent to $ 1944.80.

On Tuesday, the price of gold fell 1.8 percent, as the impact of the rise in US 10-year Treasury yields and the dollar, which reduces demand for the precious metal, outweighed the demand for its purchase as a safe haven of value.

The dollar has stabilized close to its recent gains, making dollar-denominated gold less attractive to holders of other currencies.

China kept lending rates unexpectedly stable on Wednesday, and markets viewed the move as a sign of caution as the economy slows due to COVID-19 restrictions.

US Treasury yields hovered near multi-year highs as investors prepared for a rate hike.

On Monday, gold approached the $2,000 level an ounce, but it has come under pressure ever since.

As for other precious metals, the price of silver in spot transactions fell 0.8 percent to $ 24.96 an ounce, the price of platinum fell 1.5 percent to $ 976.47 an ounce, while the price of palladium rose 0.3 percent to $ 2379.85 an ounce.