Gold eases as higher yields, firm dollar offset US-Iran peace hopes
Gold prices nudged lower on Wednesday, as rising Treasury yields and a firm dollar outweighed optimism over a potential U.S.-Iran peace agreement. Spot gold was down 0.3% at $4,467.59 per ounce, as of 0233 GMT. In the previous session, bullion hit its lowest level since March 30. US gold futures for June delivery lost 0.9% to $4,471.10. “Gold is running out of puff somewhat against this backdrop of rising yields, and a dollar which has a spring in its step courtesy of the hawkish shift in the rates outlook,” said Tim Waterer, chief market analyst at KCM Trade. The dollar hovered at a six-week high, making greenback-priced bullion more expensive for holders of other currencies. Benchmark 10-year US Treasury yields were steady at a more than one-year high, raising the opportunity cost of holding non-yielding gold.