Gold prices decline over dollar gains, higher yields

Gulf Today Report 

Gold prices dropped on Tuesday as the dollar gained and high US Treasury yields eroded investor appetite for the non-yielding metal.

Spot gold eased 0.3 % to $1,717.99 per ounce by 06:33 GMT while US gold futures slipped 0.4% to $1,716.10. 

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Michael McCarthy, chief market strategist at CMC Markets said the possibility for higher yields is affecting gold, so is a stronger dollar.

Benchmark US Treasury yields have come down from a one-year high hit last week, but continue to remain elevated, while the dollar index held near a four-week peak.

Although gold serves as a shield against inflation, the current increase in yields has threatened that status.