Gold prices fell today, Tuesday, as the rise of the dollar and the rise in US Treasury yields affected the demand for the metal, and this came before the release of inflation data in the United States.
Gold fell 0.4 percent in spot transactions, to be at 06:33 GMT at $ 1725.15 an ounce, and US gold futures fell 0.4 percent to $ 1726.20 an ounce.
The rise of the dollar is putting pressure on gold, as the metal becomes more expensive for buyers outside the United States, while the increase in bond yields raises the opportunity cost of acquiring the metal, which does not generate a return.
A survey published by the Federal Reserve Bank of New York on Monday concluded that US consumer expectations of inflation rose again in March after gradual increases in recent months, and that it has become more positive about the labor market, which supports bond yields and the dollar.
“It is difficult to imagine that gold will not rise today if the data shows an increase in inflation, but there is a high probability that it will bounce off this path later this week if the retail sales data are positive on the day,” said Stephen Enns, chief global market analyst at the financial services company, ACCI Thursday”.
As for other precious metals, silver fell 0.1 percent to $ 24.81 an ounce, while palladium settled at $ 2,676.70 an ounce, and platinum fell 0.2 percent to $ 1166.82.