Gold traded lower on Tuesday as the U.S. dollar continued to maintain its strength after being supported by higher 10 -year U.S. bond yields.
Entering the European session, the precious metal traded lower at $ 1,747 an ounce, while gold futures were slightly lower at $ 1,746 an ounce.
The surge in US bond yields to a three -month high was supported by rising prospects for a US economic recovery and expectations of a tightening of monetary policy by the Federal Reserve (Fed).
Last week, the Fed had signaled to start reducing bond purchases as soon as possible in November and raise interest rates faster than expected.
Investors ’attention is now targeted on Chairman Jerome Powell’s speech tonight who will testify before Congress on the central bank’s policy response to the pandemic.
Powel is expected to talk about increased risks to inflation, the job market and other drivers of price pressures.
Meanwhile, investors are also following developments on the US infrastructure stimulus package awaiting a vote by the House of Representatives on Thursday.
