Gold steady as dollar retreat offsets firmer Treasury yields

GOLD prices were steady on Tuesday (May 17) as a pullback in the dollar supported demand for greenback-priced bullion, although the metal's strength was partially offset by a recovery in US Treasury yields.

Spot gold held its ground at US$1,825.66 per ounce, as of 12.46 am GMT. US gold futures gained 0.6 per cent to US$1,825.00.

The dollar index moved lower for a second straight session, having hitting a 20-year peak last week, with the global economy in focus after weak economic data from China highlighted worries about the prospects for a global slowdown.

A weaker dollar makes gold more attractive for buyers holding other currencies.

However, benchmark US 10-year Treasury yields climbed, limiting demand for non-interest-bearing gold.

Gold rose slightly on Monday as a fall in Treasury yields lifted prices after they slid to a 3-1/2-month low earlier in the day.

SEE ALSO

Gold prices up from 3-month lows as dollar surge slows

DECODING ASIA

Navigate Asia in
a new global order

Get the insights delivered to your inbox.

Spot silver was flat at US$21.59 per ounce, and platinum edged up 0.1 per cent to US$946.85, while palladium fell 0.4 per cent to US$2,018.15.

Improving demand and lower supply will help palladium and rhodium swing back into deficit this year and reduce platinum's surplus, consultants Metals Focus said on Monday. REUTERS