Gold Prices Set to Snap 4-Day Losing Streak as Dollar, Bond Yield Rally Fades

© Reuters.  © Reuters. – were on track to snap a four-day losing streak after the rally in U.S. treasury yields paused, weighing on the dollar which eased from two-month highs.

for June delivery on the Comex division of the Mercantile Exchange rose by $8.70 or 0.66%, to $1,332.70 a troy ounce.

The hit 3% for the first time since 2014 but the move higher was met with resistance, pressuring the benchmark treasury yield to retreat below 3%, dragging the greenback lower.

That underpinned a move higher in prices but sentiment on the yellow metal remained negative somewhat amid growing expectations that the could hike rates three more times this year.

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Gold is sensitive to moves lower in both bond yields and the U.S. dollar – A weaker dollar makes gold cheaper for holders of foreign currency raising demand while a fall in U.S. bond yields, limits the opportunity cost of holding non-yielding assets such as bullion.

Waning geopolitical tensions, meanwhile, kept a lid on the yellow metal’s move higher after U.S. President Donald Trump said there was a “very good chance” at hashing out a trade deal with .

Trump also confirmed that U.S. Treasury Secretary Steven Mnuchin will travel to China to discuss a trade deal.

In other precious metal trade, rose 0.65% to $16.70 a troy ounce, while rose 1.27% to $934.10 an ounce.

rose 0.69% to $3.13.

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