Gold falls on strong dollar, treasury yields

Gold prices fell today, Tuesday, as the dollar benefited from higher treasury yields and economic concerns in China, while markets are now awaiting US retail sales data, which may shed light on the impact of raising interest rates on consumer spending.

According to Reuters, gold fell in spot transactions by 0.2%, to $1904.50 an ounce, to be trading near its lowest level in a month and a half, which it reached yesterday. US gold futures fell 0.4% to $1,937 an ounce.

US dollar hovered near its highest level in more than a month in light of concerns related to the Chinese economy, which makes gold more expensive for buyers abroad.

US Treasury yields reached the highest level since November 2022, which increases the opportunity cost of possessing gold that does not yield returns.

China’s central bank unexpectedly cut key interest rates today, with the growth of industrial production and retail sales slowing in the world’s second-largest economy.

As for other precious metals, silver settled at $22.62 an ounce, platinum fell 0.1% to $900.83 an ounce, while palladium fell 0.6% to $1262.34 an ounce.