Gold rises as the dollar’s rise stops

Gold rose on Tuesday as the dollar stabilized, prompting some investors to buy the precious metal ahead of the release of US inflation data that may influence the Federal Reserve’s decision on interest rates.

And gold rose in spot transactions 0.3 percent to $ 1859.05 an ounce (an ounce) by 0958 GMT and US gold futures rose 0.1 percent to $ 1861.10.

The dollar was stable after touching its highest level in 20 years on Monday, while US 10-year bond yields fell below their highest level in three and a half years.

Gold is considered a hedge against inflation and a safe haven for value during periods of political and economic uncertainty in the world, but its price is highly sensitive to rising US bond yields, which increases the opportunity cost of acquiring the non-yielding metal.

The rise in bond yields also pushes the dollar to rise, which limits the appetite for buying gold among investors abroad.

Markets are closely watching the US consumer price index data due on Wednesday in anticipation of any impact it may have on the Federal Reserve’s decision on interest rates.

As for other precious metals, silver rose in spot transactions 0.1 percent to $21.82 an ounce, platinum rose 1.8 percent to $972.88, while palladium rose 1.3 percent to $2124.63.