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Gold touches nearly 2-week low on rising U.S. yields, dollar

Mount Equity Group Tokyo Japan > News > Markets > Gold touches nearly 2-week low on rising U.S. yields, dollar

An employee arranges one kilogram gold bars for a photograph at the YLG Bullion International headquarters in Bangkok, Thailand, on Jan. 13, 2016.

Dario Pignatelli | Bloomberg | Getty Images

Gold hit its lowest in nearly two weeks on Wednesday, although prices were range-bound as safe-haven demand for bullion helped offset some sustained pressure from a firmer dollar and elevated U.S. Treasury yields.

A stronger dollar makes bullion more expensive for buyers holding other currencies, while gains in benchmark U.S. 10-year Treasury yields reduce the appeal of zero-yield gold.

Spot gold was down 0.2% at $1,833.86 per ounce, as of 0425 GMT, after hitting its lowest since May 20 at $1,832.38 earlier in the session. U.S. gold futures fell 0.7% to $1,836.20.

The outlook for interest rates and the dollar, and geopolitical concerns are important factors for gold, and “those competing interests are holding gold in a vice,” said Michael McCarthy,…

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