Gold prices stabilize as US Treasury yields fall due to the dollar’s rise

Gold prices stabilized on Tuesday, as a stronger dollar and fears that the Federal Reserve would raise interest rates again put pressure on US bond yields.

And gold settled in spot transactions at $ 1779.39 an ounce, and US gold futures fell 0.1 percent to $ 1795.70.

The US 10-year Treasury yield index fell for the third session to 2.7788 percent, reducing the opportunity cost of acquiring the non-yielding yellow metal.

Gold prices fell more than one percent to their lowest level in a week on Monday as the dollar rose to its highest level in a week in an attempt to buy the yellow metal, which is a safe haven, after weak global economic data raised fears of a recession.

Federal Reserve officials maintained a hawkish tone and signalled further interest rate hikes to curb high inflation during the year.

It is likely that higher US interest rates and a slowing economy will reduce the demand for gold.

Investors are now awaiting the minutes of the Federal Reserve’s July meeting, scheduled for Wednesday, for evidence of further interest rate hikes.

As for other precious metals, silver fell in spot transactions 0.6 percent to $ 20.13 an ounce, platinum fell 0.8 percent to $ 926.10, and palladium fell 0.7 percent to $ 2130.39.