Gold prices fell on Wednesday, to continue losses for the second straight day, and pulled back from a 5-month high on profit-taking, while the US dollar rebounded against a basket of major currencies.

Gold prices fell 0.3% to the highest since January 8 at $1,895.18, after opening at $1,900.05, and hit a high of $1,902.25.

Gold closed lower by 0.3% yesterday, after hitting a 5-month high at $1,916.25 an ounce.

The dollar index rose 0.3%, which weighs down on demand for gold and other dollar denominated metals.

The 10-year US treasury yields rose to a 2-week high of 1.62%, following better than expected manufacturing data for May.

Investors are anticipating the monthly jobs report in the US to price the chances of tightening the US monetary policy.

Gold stocks at the SPDR ETF rose 2.62 metric tonnes yesterday, with the total at the highest level since March 25 at 1,045.83 metric tonnes.

Sterling fell in European trade against dollar for another session away from three-year highs on profit-taking, while the dollar gets boosted by higher long-term US treasury yields. 

GBP/USD fell 0.1% to 1.4140, after closing down 0.4% yesterday on active profit taking away from three-year highs at 1.4250. 

Sterling was the best performing main currency against dollar in May, marking 2.9% gains, the second monthly profit in a row, and the largest since mid 2020.

Sterling was buoyed by dollar's decline to four-month lows against a basket of major rivals as bets recedes on Fed policy tightening before 2023. 

UK vaccination efforts continue smoothly, while the UK government announced relaxation of Covid 19 restrictions, raising hopes of a quick economic recovery. 

The dollar index rose 0.1% on Wednesday for another session against major rivals. 

Dollar's gains came as 10-year US treasury yields hit two-week highs at 1.62%, hurting risk appetite in the market and boosting dollar as an alternative investment, 

Gold prices held on Tuesday, weighed down by the release of upbeat US data, while the US dollar fell against most of its peers.

The Institute for Supply Management revealed that the US manufacturing PMI rose to 61.2 points in May from 60.7 points in April, beating market's forecasts of 60.8.

The US stock and bond markets were closed on Monday in observance of Memorial Day

Analysts at the Organization of Economic Cooperation and Development projected that US GDP would grow 6.9% in 2021, the biggest increase since 1984.

The dollar index fell against a basket of currencies by 0.2% to 89.8 points as of 19:13 GMT, after it hit a high of 89.9 points and a low of 89.7 points.

Gold August futures fell less than 0.1% or 30 cents, and closed at $1,905 an ounce.

Silver prices rose on Tuesday, as the US dollar fell against most of its peers, despite the release of upbeat US data.

The Institute for Supply Management revealed that the US manufacturing PMI rose to 61.2 points in May from 60.7 points in April, beating market's forecasts of 60.8.

The US stock and bond markets were closed on Monday in observance of Memorial Day

Analysts at the Organization of Economic Cooperation and Development projected that US GDP would grow 6.9% in 2021, the biggest increase since 1984.

The dollar index fell against a basket of currencies by 0.2% to 89.8 points as of 19:28 GMT, after it hit a high of 89.9 points and a low of 89.7 points.

Silver July futures rose 0.3% or 9 cents, and closed at $28.10 an ounce.