On Tuesday, gold prices trimmed early gains as U.S. Treasury yields climbed to their highest level in a week, reducing the appeal of the non-yielding asset. However, a weaker dollar and escalating trade tensions continued to provide some support for gold.
Spot gold edged up 0.1% to $2,984.16 per ounce, after rising as much as 1.3% earlier in the session. U.S. gold futures settled up 0.5% at $2,990.20. Despite gold's inability to maintain its morning momentum, certain supportive factors remain in the market, particularly a weak dollar and uncertainty in global trade conditions.
With the rise in the U.S. 10-year Treasury yield, the allure of gold as a non-yielding asset was dampened. Investors are currently focusing on the upcoming release of the Federal Reserve's policy meeting minutes, with expectations for more hints on rate cuts. According to traders, there is an approximately 40% chance that the Federal Reserve will cut rates in May.
In the precious metals market, spot silver fell 0.8% to $29.86 per ounce, while platinum rose 0.2% to $914.83. Palladium declined 1.3% to end at $906.75.
Market sentiment remains full of uncertainty, with investors continuing to monitor the Fed's actions and changes in the global economic landscape, especially trade tensions and U.S. interest rate policy's potential impact on gold prices.
