Gold prices fell on Tuesday as bullion's appeal dimmed in the face of a stronger US dollar and higher Treasury yields, while investors strapped in for key inflation data for further rate guidance on US rates, reports Reuters.
Spot gold edged down 0.3 per cent to $1,910.10 per ounce by 1156 GMT, its lowest since Sept. 15, while US gold futures fell 0.3 per cent to $1,930.10.
"With the US dollar once again on the front foot and yields edging to their highest levels since 2007, gold prices could well struggle to return to their recent peaks," said Michael Hewson, chief market analyst at CMC Markets.
The dollar scaled near 10-month high levels while benchmark 10-year Treasury yields ascended a fresh 16-year peak, raising the opportunity cost of holding bullion, which is priced in dollars and does not yield interest.
Investors will closely watch the personal consumption expenditures (PCE) price index which is due on Friday.
"If we get a strong (PCE) number which keeps the prospect of a November rate hike on the table, then we could see a move back in gold prices towards $1,900," Hewson added.
Minneapolis Fed Presi-dent Neel Kashkari on Monday said the U.S. central bank would probably need to raise borrowing rates further.
Reflecting dwindling investor interest in bullion, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell on Monday to their lowest level since January 2020.
Silver dropped 0.5 per cent to $23.01 per ounce, platinum shed 0.9 per cent to a 12-day low of $902.82 and palladium slipped 0.8 per cent to a 14-day low of $1,219.24.
