Gold prices fell more than 1% on Tuesday, as firmer US Treasury yields and a stronger dollar dented the safe-haven metal’s appeal, with investors awaiting key US non-farm payrolls data due later this week.
Spot gold fell 0.9% to $1,753.40 per ounce by 1429 GMT, and was set for its first dip in four sessions. US gold futures shed 0.9% to $1,751.00.
Upward moves in the dollar and bond yields, after the light pullback seen over the course of the last several days and a slight rebound in the equity market, are driving gold down, said David Meger, director of metals trading at High Ridge Futures.
The US dollar hit a one-year high against major rivals, making gold more expensive for other currency holders.
The benchmark 10-year yield, which last week rose to its highest level since June at 1.5670%, was last up at 1.5240%.
US non-farm payrolls data due on Friday is expected to show continued improvement in the labor market, which could prompt the US Federal Reserve to begin tapering its monetary stimulus before year-end.
Gold dips on dollar advance as traders wait for US jobs data
Reduced stimulus and higher interest rates lift bond yields, weighing on gold as it raises the opportunity cost of holding non-interest-bearing bullion.
“While gold could still move higher, a significant move would require a break above technical resistance, especially the 21-day moving average,” said Saxo Bank analyst Ole Hansen.
Meanwhile, Wall Street’s main indexes rebounded as growth stocks bounced from a sharp selloff.
Elsewhere, spot silver fell 0.8% to $22.49 per ounce, platinum dropped 1.01%, to $956.90, while palladium firmed 0.6% to $1,916.71.