Firm Dollar Caps Upside In Gold

Published on May 31, 2022 17:57

Gold continues to slide as dollar stays firm on Tuesday, propelled by higher US treasury yields. The benchmark 10-year US Treasury bond yield, which lost 1.5% last week, is already up nearly 3% so far this week at 2.83%. The dollar index, which measures the greenback against a basket of currencies rose above 101.75. Improving global risk sentiment on the back of easing Covid led restriction in China and possibility of a slower pace of US interest rate hikes and as fears of a global recession have somewhat receded could further diminish demand for the precious metal. COMEX Gold futures were trading at $1,854.43 and down more than 2% in May, the most since September 2021. Meanwhile, data showed that annual inflation rate in the Euro Area increased to 8.1% in May, a fresh record high, from 7.4% in each of the previous two months and well above market forecasts of 7.7%.