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Gold falls 1% on higher bond yields and fears of an early Fed rate hike
Gold fell on Thursday, dragged down by rising US Treasury yields and appetite for riskier assets, as investors continued to prepare for the US Federal Reserve to raise interest rates sooner than expected.
And gold fell in spot transactions 0.9 percent to $ 1751.56 an ounce by 1811 GMT, and the US gold futures contract was settled down 1.6 percent to $ 1749.80.
"We're seeing higher yields, especially real yields, and that's driving gold down," said Daniel Ghaly, commodities analyst at TD Securities.
The US central bank said on Wednesday that it will likely start reducing its bond purchases as soon as November, and indicated that it may adopt interest rate increases faster than expected.
A Federal Reserve rate hike may increase the opportunity cost of holding non-returnable gold.
And gold received a slight support from the decline in the dollar, which usually supports the demand for gold because it makes the metal cheaper for holders of other currencies and because it is a competitor to the precious metal in the list of safe haven assets.
As for other precious metals, platinum fell 0.1 percent to $ 996.30 an ounce, while palladium fell 1.5 percent to $ 1992.98 after two sessions of gains.
