Gold backs off 10-week high on profit-taking

Gold prices fell on Tuesday, and pulled back from the 10-week high hit yesterday on profit-taking, while the US dollar rose against other major currencies.

Gold prices fell 0.6% to $1,781.42 an ounce, after opening at $1,792.86, and hit a low of $1,793.17.

Gold closed higher by 1.4% yesterday, and hit a 10-week high at $1,797.92 an ounce, after weak data in the US.

Federal Reserve Bank of New York President John Williams said that the US economic recovery is not sufficient for the central bank to pull back on its aggressive monetary policy support.

The dollar index rose over 0.4%, and hit a 2-week high at 91.39 points, which weighs down on demand for gold and other dollar denominated metals.

The 10-year US treasury yields rose more than 1% today, and rebounded from a 1-week low.

Gold stocks at the SPDR ETF rose 1.16 metric tonnes yesterday, the first increase since April 19, with a total at 1,018.20 metric tonnes.