Gold falls for second month on strength in Treasury yields, dollar

Gold falls for second month on strength in Treasury yields, dollar

Gold prices eased on Tuesday, and was headed for a second straight month of declines, as a rise in the dollar and U.S. Treasury yields dented the metal's appeal despite concerns over surging inflation. Spot gold fell 0.6% to $1,845.54 per ounce by 10:49 a.m. ET (1449 GMT), and was down 2.7% for the month in its biggest decline since last September. U.S. gold futures fell 0.5% to $1,848.60.

The dollar index rose 0.2%, making gold more expensive for holders of other currencies. Meanwhile, benchmark U.S. 10-year Treasury yields jumped, dimming the appeal of the non-yielding metal. U.S. Federal Reserve Governor Christopher Waller on Monday advocated for the central bank to raise interest rates at every meeting until inflation is curbed, winding back expectations of a pause in hikes after June and July.

"There is this expectation from the market that Biden might press the Fed to do more to fight these inflationary pressures and as a result we've seen a fairly steady dollar and some light pressure on the gold market," said David Meger, director of metals trading at High Ridge Futures.

Later in the day, U.S. President Joe Biden will meet Fed Chair Jerome Powell and they are likely to discuss