Gold price hits near 2-week low as US bond yields, dollar firm

Shafaq News / Gold prices hit a near two-week low on Wednesday, as rising Treasury yields and a strengthening US dollar continued to sap demand for greenback-priced bullion.

Spot gold was down 0.2% at $1,834.09 per ounce, as of 0044 GMT, its lowest since May 20. U.S. gold futures fell 0.6% to $1,838.20.

The dollar index steadied after gaining on Tuesday, making bullion more expensive for buyers holding other currencies. Benchmark U.S. 10-year Treasury yields rose, lowering the appeal of zero-yield gold.

Gold prices fell about 1% in the previous session, and recorded a second consecutive month of declines in May. U.S. President Joe Biden on Tuesday met with Federal Reserve Chair Jerome Powell to discuss historic inflation that's draining American wallets, even as he assured the central bank chief he would have freedom from political interference.

Bullion is considered a hedge against inflation, but the Fed hiking short-term U.S. interest rates to fight rising costs raises the opportunity cost of holding it, as gold itself yields no interest.

Spot silver dipped 0.1% to $21.2 per ounce, and platinum fell 0.1% to $963.48, while palladium firmed 0.1% to $2,000.79.

(Reuters)