Shafaq News / Gold prices eased on Tuesday as the dollar benefited from elevated bond yields and China’s economic concerns, with markets now looking ahead to U.S. retail sales data that could shed light on the impact of higher rates on consumer spending.
Spot gold was down 0.2% at $1,904.50 per ounce by 0618 GMT, trading near its lowest level in 1-1/2 months hit on Monday. U.S. gold futures dropped 0.4% to $1,937.
The decline in gold has reached an over-sold condition, which may lead to an increase in short-covering risk at this juncture, said Kelvin Wong, senior market analyst, Asia Pacific, OANDA.
Making gold expensive for overseas buyers, the U.S. dollar hovered near its highest levels in more than a month amid worries over China’s economy.
U.S. 10-year Treasury yields hit a fresh peak since November 2022, increasing the opportunity cost of holding non-interest bearing bullion. [USD/] [US/]
China’s central bank unexpectedly cut key policy rates on Tuesday, as the world’s second-biggest economy’s industrial output and retail sales growth slowed and undershot forecasts. [MKTS/GLOB]
Gold prices fell as the U.S. dollar and Treasury yields were pushed higher, with investors assessing potential policy actions from Chinese regulators to address mounting financial and property risk, according to NAB Commodities Research.
(Reuters)