Gold edges higher over softened dollar, U.S yields
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Gold traded upwards on Tuesday, as the dollar index lowered momentum, while U.S. treasury yields tumbled to a record low of -1.147 percent.
Analysts, however, observed that the yellow metal saw little gains and failed to capitalise on weakened U.S benchmark treasury yields. They added that investors maintained caution ahead of Wednesday’s Federal Reserve policy meeting, expected to provide details on stimulus tapering.
Spot gold was up 0.1 percent to $1,799.40 per ounce, while August gold climbed 0.03 percent to settle at $1,799.80 an ounce.
Bart Melek, head of commodity strategies at TD Securities, noted that for gold prices to push higher from its tight trading range, there has to be more weaker economic readings in the dollar as seen in bond yields.
Other precious metals were subdued to a bearish stance as silver shed 2.5 percent to $24.53 per ounce, platinum slipped 1.9 percent to $1,043.65 and palladium lost 2.2 percent to $2,598.45.