Gold rises as US Treasury yields decline

Gold prices edged higher on Tuesday as US Treasury yields fell, but expectations of higher interest rates limited gains. Spot gold rose 0.3% to $4,357.31 per ounce. US 10-year Treasury yields declined for a second consecutive session.

Gold prices edged higher on Tuesday as US Treasury yields fell, but expectations of higher interest rates limited gains. Spot gold rose 0.3% to $4,357.31 per ounce by 00:52 GMT. US gold futures for December delivery also rose 0.3% to $4,395. US 10-year Treasury yields declined for a second consecutive session. Gold is seen as a hedge against inflation and geopolitical risks, but its appeal tends to decline when interest rates rise as investors prefer yield-bearing assets. The Federal Reserve raised its benchmark interest rate by a quarter percentage point last week and signaled further increases in the coming months. St. Louis Fed President Alberto Musalem said the central bank will likely need to raise rates further to lower inflation. Among other precious metals, silver rose 0.7% to $66.48 per ounce, platinum gained 0.8% to $1,811.28, and palladium increased 0.7% to $1,309.78.

Gold rises as US Treasury yields decline