Gold hits lowest level in two weeks over rising Treasury yields

Gold performed weaker in Asian trade on Tuesday, hitting its lowest level in over two weeks. The fall in the yellow metal’s prices was due to strengthening dollar and rising Treasury yields which were propelled by prospects of more stimulus and faster inoculation programs in the United States.

Gold futures dipped 0.42% at $1,707.35, after hitting $1,704, its lowest level since Mar. 12, earlier in the session. The dollar, meanwhile, soared to a one-year high against the yen on Tuesday.

Growing expectations of President Joe Biden’s infrastructure initiative pushed longer-dated Treasury yields upwards. The development, which is anticipated to be announced on Wednesday, could further boost the economic growth of the country.

In other precious metals, palladium gained 0.1%, bouncing back from its 5.5% drop during the previous session. Silver and platinum both lowered by 0.3%.