Gold steady as dollar retreat offsets firmer Treasury yields

Tuesday,   17-May-2022   08:01 AM (IST)

Gold prices were steady on Tuesday as a pullback in the dollar supported demand for greenback-priced bullion, although the metal's strength was partially offset by a recovery in U.S. Treasury yields. Spot gold held its ground at $1,825.66 per ounce, as of 0046 GMT. U.S. gold futures gained 0.6% to $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 U.S. 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. Spot silver was flat at $21.59 per ounce, and platinum edged up 0.1% to $946.85, while palladium fell 0.4% to $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.