Gold declines on firm US yields, dollar

Gulf Today Report 

Gold fell on Tuesday as the US dollar and Treasury yields strengthened while markets awaited comments from Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen later in the day.

Spot gold was down 0.3% at $1,734.31 per ounce by 03:45 GMT while US gold futures were also down 0.3% at $1,733.70 per ounce. 

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Stephen Innes, chief global market strategist at financial services firm Axi said, "we get a little bit of easing in yields that encourages people to step up and buy some gold. Again the afterthought is we have a little bit of higher yields coming up again, so we better sell gold - this is going to be a constant theme."

The dollar surged by 0.1% against a basket of currencies. According to Powell, the US economy is “much improved” but recovery is still “far from complete.”

"We expect gold to either see selling pressure once more beyond the quarter end, but may trade in a range in the next one week," OCBC analysts said in a note.