Gold dips as rate-hike bets outweigh dollar retreat

Gold prices eased on Tuesday as headwinds from an uptick in US Treasury yields amid prospects of more interest rate hikes offset support from a retreat in the dollar, reports Reuters.

Spot gold fell 0.1 per cent to $1,836.12 per ounce by 1006 GMT. US gold futures were flat at $1,839.50.

The dollar, which has actually been the key driver for gold, is significantly softer, but the countervailing force is coming from a much higher US Treasury yield, said Ross Norman, an independent analyst.

The dollar weakened, making bullion more attractive for buyers holding other currencies, but benchmark US 10-year Treasury yields rose.

Spot silver rose 0.5 per cent to $21.68 per ounce, platinum gained 1.1 per cent to $941.51 and palladium added 2.5 per cent to $1,893.24.