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.

At 10:00 GMT, the German ZEW Economic Sentiment Index rose to the highest level since July 2021 at 51.7 points in January, from 29.9 in December, beating forecasts of 32.1 points.

At 10:00 GMT, the European ZEW Economic Sentiment Index rose to the highest level since July 2021 at 49.4 points in January, from 26.8 in December, beating forecasts of 29.2 points.

Euro fell in European trade against dollar for third straight session under pressure from a new jump in US treasury yields, bolstering dollar purchases.

EUR/USD fell 0.2% to 1.1385, with an intraday high at 1.1421, after closing down 0.1% yesterday, the second loss in a row on profit-taking away from 1.1482.

The dollar index rose 0.2% on Tuesday for the third straight session against a basket of major rivals. 

Dollar's gains came as US treasury yields continue to rally amid estimates of an interest rate hike by the Fed next March, leading to four overall hikes in 2022. 

US 10-year treasury yields rose 2.1%, the third such gain in a row, marking two-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.