Gold prices slipped on Tuesday to their lowest in additional than fortnight, weighed down by a firm U.S. dollar and Treasury yields as expectations of a swift economic turnaround grew with vaccination rates gaining traction.
Bullion, often sought as a secure store useful in times of economic turmoil, is sensitive to rising yields as they raise the chance cost of holding non-yielding gold.
Spot gold was down 0.3% at $1,706.86 per ounce by 0326 GMT. Earlier within the session, bullion touched $1,704, its lowest since March 12. U.S. gold futures were down 0.4% at $1,708 per ounce.
Silver fell 0.3% to $24.59 an oz and platinum shed 0.3% at $1,171.63. Palladium was up 0.1% at $2,530.06, having slid 5.5% in the previous session.
Longer-dated Treasury yields gained amid expectations that U.S. President Joe Biden’s infrastructure initiative could further bolster economic process .
Further pressuring gold, dollar climbed to a one-year high against the yen on Tuesday as investors fretted about the potential fallout from the collapse of a hedge fund, identified as Archegos Capital.