NEW YORK: Gold prices rose about 1% on Tuesday and hit the highest in more than a week, boosted by as a retreating dollar and lower US Treasury yields.
Spot gold rose 0.8% to $1,743.04 per ounce by 2:11 p.m. EDT (1811 GMT), after hitting its highest level since March 25 at $1,745.15. US gold futures settled higher at $1,743.
Gold has been lifted temporarily by a steady decline in the dollar index and lower Treasury yields, said Phillip Streible, chief market strategist at Blue Line Futures in Chicago.
“The rally is not necessarily sustainable... $1,750 I believe is a resistance point,” Streible said.
The dollar fell to a near two-week low, making gold cheaper for holders of other currencies, while benchmark US Treasury yields drifted lower.
“Investors believe that we are not going to see another huge run-up in the yields and that has prompted gold to technically rebound,” said Bart Melek, head of commodity strategies at TD Securities.
“For the gold story to return to a firmer footing ... we need to see either some geopolitical concerns or inflation pick up more aggressively than the market has been pricing,” said Saxo Bank analyst Ole Hansen.
Investors are also awaiting minutes on Wednesday from the Federal Reserve’s last meeting for more cues on its monetary policy.
Cleveland Fed Bank President Loretta Mester on Monday said the US economic outlook is brightening, though the US central bank should stick to its easy policy to support growth further. In other precious metals, silver rose 1% to $25.14 per ounce, palladium gained 0.5% to $2,676.74 platinum climbed 2% to $1,232.52.