Gold rose on Tuesday thanks to declining US Treasury yields, while the rise of the dollar limited gains, ahead of testimony from Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen.
And gold increased in the spot market 0.1 percent to 1739.66 dollars an ounce, by 12:05 GMT, while gold in the US futures contract settled at 1738.70 dollars an ounce.
“The market seems to be suffering, especially at $ 1745,” said Ross Norman, an independent analyst. “There will be some downturns due to the strength of the dollar.” “Looking to the future, the situation will depend on inflation in the second half of the year,” he added.
The dollar rose 0.4 percent, which increases the cost of the yellow metal to holders of other currencies, despite the decline in the yield of US bonds, which reduces the opportunity cost of holding gold that does not generate a return.
Investors are awaiting Powell Willin’s testimony before Congress today. Last week, the Federal Reserve confirmed its commitment to continuing a very easy monetary policy, despite expected inflationary pressures.
Silver fell 0.8 percent to 25.56 dollars an ounce, platinum lost 0.9 percent to record 1171.98 dollars an ounce, and palladium fell 0.6 percent to 2599.48 dollars an ounce.