Investing.com – Gold prices were trading lower on Monday while the U.S. dollar rose amidst higher 10-year U.S. treasury yields.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange was down $3.0, or 0.22%, to $1,335.3 a troy ounce by 11:29AM ET (03:29 GMT).
Meanwhile, the dollar gained against other major currencies on Monday morning as supported by the steep rise in U.S. Treasury yields last Friday.
The U.S. dollar index that tracks the greenback against a basket of six major currencies last stood at 90.15, up 0.07% at 11:17PM ET (03:17 GMT). The greenback climbed up to the 90 level after being subdued in the 89 range in the previous week.
The dollar got a lift from yields on 10-year U.S. Treasuries that inched up on Friday to 2.96%, the highest level since January 2014.
Speculation about an accelerated Federal Reserve rate hike cycle also drove the dollar higher and soured market sentiment for commodities.
Dollar-denominated assets such as gold are sensitive to moves in the dollar – a gain in the dollar makes gold more expensive for holders of foreign currency and thus decreases demand for the precious metal.
Geopolitical developments were also in focus as North Korea’s leader Kim Jong Un said he might be open to putting nuclear tests on hold last Friday. And the trade tensions between China and the U.S. are still ongoing.
In other precious metal trade, silver futures fell 0.57% to $17.065 a troy ounce, while platinum futures gained 0.14% to $930.70 an ounce.