May 19 (Reuters) – Gold prices fell by more than 1% on Tuesday on a firmer U.S. dollar and as persistent inflation fears kept interest rate hike expectations and Treasury yields high.
Spot gold was down 1.4% at $4,503.98 per ounce by 1:45 p.m. ET (1745 GMT). Prices fell to their lowest level since March 30 earlier in the session.
U.S. gold futures for June delivery settled 1% lower at $4,511.20.
“We are seeing a multi-country rise in real rates around the world, and that is really weighing mostly on gold. The dollar is also stronger, that’s a negative,” said Edward Meir, an analyst at Marex.
Benchmark 10-year U.S. Treasury yields were near a more than one-year high, while the U.S. dollar strengthened. Both rose as investors eyed a possible hawkish shift by the Federal Reserve to curb energy-driven inflation.
Higher Treasury yields raise the opportunity cost of holding…
