Gold prices edged lower on Tuesday, retreating further from a two-and-a-half month peak hit last week, as a firmer dollar and an uptick in U.S. Treasury yields dented the appeal of non-interest bearing bullion.
Spot gold dropped 0.7 percent to $1,810.91 per ounce, while U.S. gold futures fell 1.1 percent to $1,812.85.
The dollar index rose 0.2 percent against its rivals and benchmark 10-year yields jumped to a more than one-week high, as investors assessed the global outlook against the backdrop of rising Delta coronavirus cases and signs of a slowdown in the economic recovery.
Market participants also looked ahead to Thursday’s meeting of the European Central Bank, which may act to slow down its massive bond-buying program in light of recent stronger-than-expected inflation data.
Earlier today, the Reserve Bank of Australia pressed ahead with its decision to reduce bond purchases by A$1 billion a week this month but postponed its next review of the weekly pace from November to mid-February.