Investing.com – Gold prices continued near December-lows on Thursday, as a stronger U.S. dollar and bond yields kept the price of bullion lower.
Comex for June delivery were down 0.17% to $1,289.30 a troy ounce as of 10:25 AM ET (14:25 GMT).
The price of bouillon was driven lower by the rise in the greenback and increase in bond yields. . The , which measures the greenback’s strength against a basket of six major currencies, rose 0.10% to 93.36.
Gold is denominated in the U.S. currency and becomes more expensive for holders of other currencies when the dollar rises.
Meanwhile the precious metal was held back by rising bond yields. The yield on the benchmark Treasury note was at 3.100 after reaching a seven-year high of 3.119 earlier in the session.
The rise in bond yields, along with positive economic data and rising inflation, has boosted expectations that the Federal Reserve will increase interest rates and tighten monetary policy.
The Fed raised rates in March and is expected to raise rates twice more, with some investors expecting a third hike.
Expectations of higher interest rates tend to boost the dollar by making the currency more attractive to yield-seeking investors.
Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.
Elsewhere on the Comex, were up 0.67% to $16.48 a troy ounce. Among other precious metals, fell 0.19% to $888.10 while slipped 0.39% to $978.70 an ounce. futures increased 0.41% to $3.083 a pound.
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Source: Investing.com
