Gold is falling with the rise of the dollar

Gold prices fell on Tuesday as the dollar rose on expectations that prices may in the near term retest the resilience of the yellow metal at the key level of $2000 an ounce.

Spot gold fell 0.2 percent to 1975.36 dollars an ounce, and US gold futures fell 0.4 percent to 1978.40 dollars.

Gold rose to a one-month high of $198.10 on Monday, boosted by the demand for safe havens as the Ukraine crisis persisted and inflation fears increased. However, the yellow metal later lost most of its gains on the back of the dollar’s rise and US 10-year Treasury yields.

The dollar climbed to its highest level since April 2020 as investors prepared for the Federal Reserve to raise interest rates by half a percentage point as it sought to rein in high inflation.

However, 10-year US Treasury yields fell slightly from their three-year highs on Tuesday, lending some support to non-yielding gold.

Among other precious metals, spot silver fell 0.3 percent to $25.76 an ounce, while platinum rose 0.4 percent to $1014.10 and palladium fell 0.4 percent to $2,430.10.