Investing.com – Gold prices were on track to snap a four-day losing streak after the rally in U.S. treasury yields paused, weighing on the dollar which eased from two-month highs.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange rose by $8.70 or 0.66%, to $1,332.70 a troy ounce.
The 10-year US treasury yield hit 3% for the first time since 2014 but the move higher was met with resistance, pressuring the benchmark treasury yield to retreat below 3%, dragging the greenback lower.
That underpinned a move higher in gold prices but sentiment on the yellow metal remained negative somewhat amid growing investor expectations that the Federal Reserve could hike rates three more times this year.
Gold is sensitive to moves lower in both bond yields and the U.S. dollar – A weaker dollar makes gold cheaper for holders of foreign currency raising demand while a fall in U.S. bond yields, limits the opportunity cost of holding non-yielding assets such as bullion.
Waning geopolitical tensions, meanwhile, kept a lid on the yellow metal’s move higher after U.S. President Donald Trump said there was a “very good chance” at hashing out a trade deal with China.
Trump also confirmed that U.S. Treasury Secretary Steven Mnuchin will travel to China to discuss a trade deal.
In other precious metal trade, silver futures rose 0.65% to $16.70 a troy ounce, while platinum futures rose 1.27% to $934.10 an ounce.
Copper rose 0.69% to $3.13.