Investing.com – Gold prices were pushed lower Tuesday by higher U.S. government bond yields and a rising dollar, which also dented sentiment on other metals.
Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $4.50, or 0.37%, to $1,255.00 a troy ounce, hovering just above an intraday low of $1,247.80.
Investor appetite for safe heavens such as gold, yen and Treasuries, were scaled back by sentiment for riskier assets, triggering an uptick in U.S. bond yields and forcing gold prices lower.
The uptick in U.S. Treasury bond yields, which trade inversely to bond prices, were also supported by an increase in supply as a fresh round of the Treasury auctions slated for this week got underway Tuesday.
Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding gold as it pays no interest.
Dollar strength, meanwhile, also held back metals, amid slight euro weakness and a slump in traditional safe-haven currencies like the yen.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.15% to 93.94.
Dollar-denominated assets such as gold are sensitive to moves in the dollar. A rise in the dollar makes gold more expensive for holders of foreign currency, reducing demand for the precious metal.
Copper prices, fell 0.74% to $2.83, while zinc prices fell 2.67% to 2,625.75.
Copper prices continue to be pressured by a wave of selling following a report Chinese brokerage and major copper buyer Gelin Dahua had begun liquidating a $1 billion bet on the metal last week.
Aluminium prices fell 1.21% to 2,087.75.
Silver futures fell 0.27% to $16.10 a troy ounce, while platinum futures lost 0.60% to $848.40.