Title: Gold Down, Supported by Lower U.S. Yields but Pressured by Strengthening Dollar

Jun 02, 2022 12:06AM ET

By: AnalysisWatch

Gold fell in Asia on Thursday morning, with the yellow metal caught between slightly lower US Treasury yields and strong dollar pressure.

Gold futures fell 0.08% to $1 847.15 at 12:03 ET and have traded in a narrow range between $1 828 and $1 864 for about a week, staying broadly around $1 850.

Prices are consolidating for now, said Brian Lan, CEO of Gold Silver Central, adding that trading in this range could continue as some investors sit on the sidelines in the absence of major news.

Investors are also waiting for gold's reaction to the lifting of the Shanghai blockade.

While there may be demand on the physical side, institutions holding large amounts of gold may liquidate them to raise funds, according to Lan.

Yields on US 10-year Treasuries fell, and the dollar, which usually moves inversely to gold, rose on Thursday. The dollar stabilized after hitting a more than one-week high on Wednesday.

Canada's central bank raised its overnight interest rate by half a percentage point to 1.5%.

Among other precious metals, silver fell 0.1%, platinum fell 0.7%, and palladium rose 0.2%.