Gold prices decline on higher US dollar and bond yields

Spot gold was down 0.6% at $1,960.50 per ounce by 1218 GMT.

US gold futures fell 0.8% at $1,971.80.

In the past two weeks, gold has risen about 9%, hitting five month high of $1,997.09 on October 20, on escalating conflict between Israel and Hamas in the Middle East region.

After the war erupted between the two, investors started investing their funds into safe haven assets.

Spot silver slipped 0.8% at $22.80 an ounce.

On Monday, gold for December delivery fell $6.60 at $1,987.80 an ounce. Silver for December delivery dropped 29 cents at $23.21 an ounce.

The US dollar rose 0.3% against its rivals, making gold more expensive for other currency holders.

The yield on benchmark 10-year US treasury was at 4.8653% after crossing above 5% on Monday.

Investors are awaiting the US third quarter GDP data on Thursday and the US PCE price index data on Friday that could provide some clues to the Federal Reserve’s monetary policy.

The US central bank will hold 

its policy meeting next week (October 31 to November 1). 

Platinum dipped 1.5% at $883.39, while palladium eased 0.3% at $1,114.77. 

Global stocks rose on Tuesday amid the ongoing Middle East war.

The MSCI all-world index added

0.4%, while an index of Asia-Pacific shares outside Japan edged above a one-year low.

On the Wall Street, the US stock indices rose in morning trade. The Dow Jones Industrial Average rose 0.81%, at 33,202. The S&P 500 gained 0.74%, at 4,248. The Nasdaq Composite added 0.73%, at 13,112.

In Europe, the STOXX 600 was little changed. 

Crude oil prices fell further after a flurry of weak economic data. 

The US crude benchmark fell 0.57% at $85.00 per barrel and Brent was down 0.52% at $89.36 on the day.

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Updated: 24 Oct 2023, 07:56 PM IST