Investing.com – Gold prices fell to one week lows on Tuesday as rising U.S. Treasury yields dampened investor demand for the precious metal.
for June delivery on the Comex division of the New York Mercantile Exchange were down $7.60 or 0.58% to $1,310.60 a troy ounce by 03:59 AM ET (07:59 AM GMT), the lowest since May 8.
The yellow metal slid as the yield on ticked up to 3.025%, the highest level in three weeks. A rise above the high of 3.035% reached on April 25 would take it to its highest since early 2014.
Higher Treasury yields can spell weakness for gold which, like other commodities, offers no yield.
U.S. bond yields were boosted by signs of easing trade tensions between the U.S. and China after U.S. President Donald Trump pledged to help Chinese technology company ZTE (HK:). Last month, the Trump administration barred U.S. companies from selling to ZTE, effectively crippling the company.
The dollar edged higher, with the , which measures the greenback’s strength against a basket of six major currencies, last at 92.62, pulling away from Monday’s lows of 92.11, the weakest since May 2.
A stronger U.S. currency makes dollar denominated gold more expensive for overseas buyers.
In other metals trading, July were down 1.11% to $16.46 a troy ounce, while July shed 0.8% to trade at $907.60. July were off 0.26% at $3.085 a pound.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Source: Investing.com
