Gold Falls as The Dollar’s Bleeding Stops

Gold retreated from its highest level in more than a week on Monday, October 4, as US Treasury yields rose and the dollar compensated for some of its losses, but it remained above the technically important $1750 support level, supported by market fears of inflation.

Spot gold fell 0.5% to $1,751.24 an ounce, after hitting its highest level since September 23, recording $1,765.54 an ounce earlier in the day. US gold futures fell 0.4% to $1,751.80.

Reducing stimulus and increasing interest rates tend to push up government bond yields, increasing the cost of holding non-yielding gold.

As for other precious metals, silver fell 0.5% to $22.41 an ounce, platinum fell 1.7% to $955.05 and palladium fell 1.4 percent to $1891.36.