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NEW YORK: Gold prices fell nearly 1% on Tuesday and was headed for a second consecutive month of declines, pressured by a rise in the dollar while US Treasury yields dented the metal’s appeal despite concerns over surging inflation.

Spot gold was down 0.7% to $1,842.49 per ounce by 12:07 p.m. ET (1607 GMT), falling nearly 1% earlier in the session to $1,837.99, and was down 2.8% for the month in its biggest decline since last September.

US gold futures fell 0.6% to $1,845.80.

The dollar index rose 0.1%, making gold more expensive for holders of other currencies. Benchmark US 10-year Treasury yields jumped, dimming the appeal of the non-yielding metal.

US Federal Reserve Governor Christopher Waller on Monday advocated for the central bank to raise interest rates at every meeting until inflation is curbed, winding back expectations of a pause in hikes after June and July.

“There is this expectation from the market that Biden might press the Fed to do more to fight these inflationary pressures and as a result we’ve seen a fairly steady dollar and some light pressure on the gold market,” said David Meger, director of metals trading at High Ridge Futures.

Later in the day, US President Joe Biden will meet Fed Chair Jerome Powell and are likely to discuss the historic inflation and the US and global economies.

While gold is viewed as a hedge against inflation, rising US interest rates increase the opportunity cost of holding non-yielding bullion and boost the dollar in which gold is priced.

Data on the day showed Euro zone inflation rose to yet another record high in May.

Silver fell 1% to $21.73 per ounce, and was down nearly 4.5% for the month.

Platinum was up 0.6% to $964.88 per and was set for its first monthly gain in three.

Palladium fell 1.6% to $2,000.62 and declined 13.8% so far this month, the most since November.

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