Gold declines as US dollar and Treasury yields rise

Gold fell slightly on Tuesday as the dollar and US Treasury bond yields rose, while investors awaited comments from a group of Federal Reserve officials this week to clarify more about the path of interest rates.

According to Reuters, the price of gold in spot transactions fell 0.2% to $2,050.35 per ounce by 0201 GMT. US gold futures rose 0.1% to $2,054.10.

The dollar index jumped to its highest level in 10 days, making bullion less attractive to holders of other currencies, while yields on standard ten-year US Treasury bonds rose to hover near four percent levels.

It is expected that the US Central Bank will announce at the end of its meeting on January 30 and 31 that interest rates will remain unchanged.

Traders are betting on six interest rate cuts of 25 basis points each time this year, and they expect the first cut to take place in March.

Low interest rates increase the demand for buying bullion that does not generate interest

A group of Federal Reserve officials are scheduled to speak this week, including Christopher Waller, a member of the central bank’s Board of Governors, who will deliver a speech about the economic outlook before the Brookings Institution at 1600 GMT.

Elsewhere, European Central Bank officials tempered market expectations of rapid interest rate cuts this year.

In terms of other precious metals, silver fell in spot transactions by 0.2% to $23.15 per ounce, platinum fell by 0.4% to $911.59, and palladium fell by 0.3% to $968.96.