Gold declines, losses dampened by weak dollar

Gold fell on Tuesday in Asia but stayed near a two-month high reached during the previous session. The yellow metal’s losses were capped by a weakened dollar, as well as the insistence of key central banks that inflation will be temporary and that increases in interest rates would not be immediately required.

Gold futures edged down 0.14% to $1,825.45 by 11:07 PM ET (4:07 AM GMT) after touching their highest level since September 7 on Monday. The dollar, typically moving inversely to gold, moved down on Tuesday and did not move far from the last session’s lows.

The benchmark U.S. 10-year yield remained largely the same at 1.4862% following a 4-basis-point gain in the last session.

U.S. Federal Reserve officials resumed a debate on the recovery of the job markets and how much longer the central bank can tolerate high inflation.

Chicago Fed Bank President Charles Evans professed on Monday that he is a little more anxious about inflation high. However, Evans added that he still expects the central bank will not need to increase interest rates until 2023.

In Russia, the country’s finance ministry said that 256.54 tons of gold were produced between January and September, higher than the 253.77 tons produced in the comparable period in 2020.

Meanwhile, gold refineries in the United Arab Emirates have been required to undergo annual audits to ensure the responsibility of their suppliers as the Arab country fought off illegal trading, according to reports.

In other precious metals, silver and platinum shed 0.1% and 0.4%, respectively, while palladium gained 0.2%.