Gold prices in check as central banks rev up policy tightening

Gold prices in check as central banks rev up policy tightening

Gold prices held near one-week lows on Tuesday, as investors wagered that aggressive tightening plans by major central banks are going to keep interest rates higher for an extended time, boosting the U.S. Treasury yields and in turn the dollar.







Reuters









June 07, 2022 / 08:51 AM IST





Gold, Gold Prices



Gold prices held near one-week lows on Tuesday, as investors wagered that aggressive tightening plans by major central banks are going to keep interest rates higher for an extended time, boosting the U.S. Treasury yields and in turn the dollar.

Spot gold was flat at $1,840.16 per ounce, as of 0232 GMT. Earlier in the session, bullion slipped to $1,836.10, its lowest since June 1. U.S. gold futures also eased by 0.1% to $1,842.30.

"The move higher in U.S. yields ahead of this week’s U.S. bond auction is spooking gold investors … The dollar is surging on the back of those higher yields,” said Stephen Innes, managing partner at SPI Asset Management. [US/]

The U.S. dollar was 0.2% higher as benchmark 10-year note yields climbed to their highest in nearly a month. [USD/]

Analysts at JP Morgan expect gold trading softer towards an