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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.