Gold extends losses due to US yields , why?

Gold prices declined in European trade for the third straight session as US 10-year yields rally, pressuring the precious metal.

Gold is also pressured by ongoing efforts by global central banks to tighten policies to combat inflation.

Gold prices fell 0.3% to $1,832 an ounce, after losing 0.2% yesterday, the second loss in a row. 

US Yields 

US 10-year treasury yields rose 1.2% on Tuesday for the third straight session on track to hit  11-year highs at 3.5%. 

Higher yields pressure precious metals such as gold as they are unyielding. 

Global Central Bank

Global central banks are still moving to control inflation and prices, with Bank of England hiking rates by 25 basis points to 1.25%, the fifth such increase in a row.

Swiss Central Bank decided to hike rates by 50 basis points at the June 16 meeting to minus 0.25%, the first such increase since 2007, while analysts expected no change at minus 0.75%.

Higher interest rates weaken demand on gold prices as it becomes less attractive as an investment.

The SPDR

Gold holdings at the SPDR Gold Trust remained flat at 1,075 tones, the highest since May 9.