Gold prices fell on Tuesday, and hit a 1-week high, on track for the third daily loss in 4 days, as the US dollar rose against a basket of major currencies, following the US Treasury bond yields rise.
Gold prices fell 0.5% to the lowest since January 11 at $1,809.14 ounce, after opening at $1,818.79, and a high at $1,822.76.
Gold prices rose 0.1% in thin trading yesterday, posting the first gain in 3 days.
The dollar index rose by 0.2% today, extending gains for the third straight day against a basket of major currencies, which weighs down on the prices of gold and other dollar-denominated metals.
The greenback rose today following the US 10-year Treasury bond yield, which boost the dollar's investment attractiveness.
US 10-year treasury yields rose 2.1%, the third such gain in a row, marking a 2-year high at 1.856% while analysts expect it to reach 2% soon.
This development in the bonds market renewed concerns regarding the widening gulf between US and European treasury yields, as the European Central Bank continues to support ultra easy policies.
Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the lowest since December 28 of 976.21 metric tonnes.