Gold prices firm as US Treasury yields fall, dollar up

Gold prices firmed on Tuesday, as the dollar’s rise and fears that the Federal Reserve (the US central bank) will raise interest rates again put pressure on US bond yields.

Spot gold transactions traded at $ 1779.39 per ounce, and US gold futures fell 0.1% to $ 1795.70.

The US 10-year Treasury bond yield index fell for the third session to 2.7788%, reducing the opportunity cost of acquiring the yellow metal that does not yield a return.

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 hinted at an increase in interest rate hikes during the year to curb high inflation.

It is possible that higher US interest rates and a slowdown in the economy will reduce the demand for gold

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