LONDON. – Gold dipped on Tuesday, heading for a third straight day of losses as a rise in US borrowing costs supported the dollar and overshadowed the impact of strife in Gaza. Israeli troops shot dead dozens of Palestinian protesters on the Gaza border on Monday when the high-profile opening of the US embassy to Israel in Jerusalem by the Trump administration raised tension to boiling point.
But gold investors were fixated on the dollar, which rose versus a currency basket as 10-year U.S. bond yields shot above 3 percent, sending borrowing costs higher in a number of other countries. Spot gold had dipped 0,2 percent to $1,309.99 per ounce by 0949 GMT.
US gold futures for June delivery fell 0.6 percent to $1,309.70 per ounce.
A Federal Reserve official this week backed the case for further interest rate hikes in the United States, saying inflation had not yet reached the US central bank’s 2 percent goal in a sustained way.
Higher US interest rates tend to boost the dollar and push up bond yields, making greenback-denominated gold more expensive for holders of other currencies and denting the appeal of non-yielding assets such as gold. – Reuters.
Source: The Herald