Gold futures traded modestly lower early Tuesday, putting the precious on track to log only the second consecutive loss in April.
Reignited worries that bond yields will resume a steady uptrend, deflated some appetite for bullion, commodity analysts said.
The 10-year Treasury note’s yield
was steady at around 1.60%, while the comparable German bund
was touching its highest yield in about a year. A rise in government debt yields can weigh on appetite for precious metals which don’t offer a coupon.
“The 50-day [simple moving average] at $1,750 may offer an area to rest should the move in yields gather steam,” wrote Neil Wilson, chief market analyst at Markets.com in a daily note.
edge 60 cents, or less than 0.1%, at $1,770.30 an ounce, after declining 0.5% a day ago.
The moves for bullion also came as the dollar was perking up, trading up 0.1%, as gauged by the ICE U.S. Dollar index
after sharp down move this month. A stronger buck can make dollar-priced commodities less appealing for overseas buyers.
“The softer dollar is a support but yields matter more for gold,” Wilson wrote.
Precious metals declined, despite renewed worries about a remergence of COVID-19 in parts of the globe, including India, where the outbreak has pushed the country to the second-highest infection rate in the world.