Gold Prices Flat as Dollar Takes a Breather

© Reuters. Gold prices hold steady

Investing.com - Gold prices were largely unchanged Wednesday as investors grappled with rising U.S. interest rates, although the metal drew some support from the dollar coming off a seven-week high.

Comex gold futures were down 20 cents at $1,191.30 a troy ounce by 10:28AM ET.

Meanwhile, spot gold was trading at $1,188.35 per ounce, down $1.50, or 0.1%.

Yields on the benchmark 10-year Treasury note rose to around 3.23% after reaching a seven-year top of 3.261% a day earlier.

Treasury yields have surged recently following a batch of upbeat economic data that bolstered the case for the Federal Reserve to raise rates in December and beyond.

Expectations for rising interest rates look likely to remain a headwind for gold prices. Interest rate increases and higher U.S. bond yields dampen appeal for gold, which offers no yield.

Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.2% at 95.17, pulling back from a seven-week high of 95.84 reached in the previous session.

Dollar weakness usually benefits gold, as it boosts the metal's appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

In other metals action, silver futures were 8.5 cents, or 0.6%, lower at $14.31 a troy ounce.

Platinum was down 0.4% at $825.60, while palladium gained 0.3% to $1,065.10.

December copper shed 2.3 cents, or 0.8%, to $2.785 a pound.