The yellow gold metal continued to trade lower after slipping to a seven -week low, weighed down by the greenback dollar which soared to a one -year high.
In the Asian session, gold traded at $ 1,732 per ounce, up slightly from the lowest level it touched in the New York session at $ 1,720 per ounce.
The dollar index traded higher than its main rivals, raising the cost of holding gold for buyers of other currencies.
US 10 -year bond yields, meanwhile, saw a slight decline, but still held above 1.5%, around a three -month high causing gold trading to continue to be depressed.
The rise continues to be supported by market optimism for the US Federal Reserve (Fed) to begin reducing its monthly asset purchases soon and interest rate hikes faster.
Rising global energy prices also supported the strengthening of US bond yields at record highs which raised concerns over inflation.
The situation should support gold trading as it is considered a hedge to inflation. However, with the expectation that stimulus reductions and tightening will be implemented, causing gold to fail to capitalize on opportunities.
