Investing.com – Gold prices fell modestly Wednesday as rising U.S. bond yields forced the yellow metal to give up some of its gains following a fall in the dollar.
for June delivery on the Comex division of the New York Mercantile Exchange fell by $2.00 or 0.15%, to $1,300.20 a troy ounce.
The rose sharply just shy of the 3% mark as Treasury prices – which trade inversely to yields – followed European government bonds lower after the European Central Bank’s top economist said the central bank would consider scaling back bond purchases.
ECB chief economist Peter Praet said on Wednesday the central bank would next week debate whether to cut bond purchases gradually, Reuters reported.
Gold is sensitive to moves higher in U.S. rates, which lift the opportunity cost of holding gold as it pays no interest.
Gold prices had started the session on the front as the dollar fell on the back of a surge in the and weaker U.S. labor market data. But the has since moved off its lows, keeping lid on upside momentum in the yellow metal.
Dollar-denominated assets such as gold are sensitive to moves in the dollar – A rise in the dollar makes gold more expensive for holders of foreign currency and thus, reduces demand for the precious metal.
In other precious metal trade, rose 0.77% to $16.67 a troy ounce, while rose 0.43% to $905.20 an ounce.
rose 1.83% to $3.26.
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Source: Investing.com
