Gold declines as dollar and bond yields rise

Gold prices returned on Wednesday, heading towards the lowest level in seven months, in light of the rise in the dollar and Treasury bond yields after strong US jobs data, which maintained expectations of further monetary tightening, while palladium fell to its lowest level since late 2018.

Spot gold prices fell 0.2 percent to $1,819 per ounce by 0723 GMT, and US gold futures fell 0.3 percent to $1,835.50.

Prices fell for the seventh consecutive session on Tuesday, touching the lowest level since March at $1,813.90 due to the rise in the dollar supported by data that showed an unexpected increase in job opportunities in the United States in August.

Ten-year US bond yields rose to the highest level in 16 years, reducing demand for the non-yielding precious metal.

Federal Reserve officials view the rise in long-term Treasury yields as evidence of the success of their monetary tightening policies.

The rise in the dollar also put pressure on other precious metals priced in the US currency, as silver prices in spot transactions fell 0.6 percent to $21.03 per ounce, after recording the lowest level since mid-March in the previous session.

Platinum also fell 0.9 percent to $863.48, the lowest level in a year. Palladium also fell 2.2 percent to $1,163.55, recording its lowest level since November 2018.