Gold near five-week lows, trapped by stronger dollar
The dollar nears a three-and-a-half month high, as US 10-year treasury yield move above 3%
London — Gold prices hovered near five-week lows on Thursday as higher US bond yields and a stronger dollar dampened interest in bullion. Worries about growing supply of US government debt and inflationary pressures from rising oil prices have pushed US 10-year bond yields above 3% for the first time in four years. That, in turn, has helped thrust the dollar to its strongest since January, making bullion more expensive for users of other currencies. Higher bond yields, meanwhile, also reduce the attraction of non-yielding gold. Spot gold was up 0.1% at $1,324.95 an ounce at 11.56am GMT after having touched its lowest since March 21 at $1,318.51 on Wednesday. US gold futures were up 0.3% at $1,326.30 an ounce. Interest from physical buyers and technical support at gold’s 100-day moving average of $1,319.55 helped prevent further falls. "At these low [price] levels, the market could now attract some physical buying interest," said Peter Fung, head of dealing at Wing Fung Precious Meta...
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