Gold rises with dollar weakness and interest rate hike fears curb gains

Gold prices rose on Thursday due to a slight decline in the dollar, although higher Treasury yields and the prospect of further interest rate hikes by the Federal Reserve capped gains.

By 0909 GMT, spot gold rose 0.2 percent to $1,631.54 an ounce. US gold futures rose 0.1 percent to $1,636.50.

But he added that higher yields in the major bond markets and expectations of further monetary policy tightening by most of the world’s central banks are negatively affecting the prices of the yellow metal.

And benchmark 10-year Treasury yields are stable near their highest level since mid-2008, increasing the opportunity cost of holding non-yielding gold.

As for other precious metals, silver increased in spot transactions 0.2 percent to $18.47 an ounce. Platinum rose 0.3 percent to $886.50 an ounce. And palladium fell 0.8 percent to $ 1984.53 an ounce.