Gold dips as dollar attempts recovery

Gold edged lower on Tuesday, as the U.S. dollar rebounded slightly after a slide in the previous session, weighing on demand for greenback-priced bullion, Reuters reported.

Spot gold fell 0.2% to $1,850.40 per ounce, as of 0240 GMT, after rising to its highest since May 9 of $1,865.29 on Monday. U.S. gold futures were flat at $1,848.20.

The safe-haven dollar clawed back some of its overnight losses. A stronger dollar makes bullion more expensive for overseas buyers.

Bullion, seen as a safe store of value during times of economic crises, tends to become less attractive to investors when U.S. interest rates are raised because it yields nothing.

SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.44% to 1,068.07 tonnes on Monday from 1,063.43 tonnes on Friday.

Benchmark U.S. 10-year Treasury yields eased, limiting losses in zero-yield gold.

Spot silver dipped 0.3% to $21.71 per ounce, and platinum eased 1.3% to $946.00, while palladium edged up 0.1% to $1,994.50.

Russia’s Nornickel on Monday cut its estimate for the global palladium market deficit in 2022 due to lower demand from the car industry amid the Ukraine crisis and a slow recovery of the chip market from shortage.