Gold Futures Edge Higher as 10Year Yields Slide Below 1.5

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Gold futures on Tuesday edged higher, partly supported by a retreat in yields for benchmark 10year Treasury bonds and a slide in the U.S. dollar.

August gold was trading 2.10, or 0.1, higher at 1,896.30 an ounce, following a 0.2 decline on Tuesday, which marked bullions first decline in three sessions.

Gold has struggled to consistently hold above a price at 1,900 an ounce, a level viewed as resistance for the precious metal in recent trading.

Wednesdays trading comes as the 10year Treasury yield hit its lowest level since around March. Meanwhile, the U.S. dollar slipped below a key level at 90, down 0.1, as gauged by the ICE U.S. Dollar Index.

Bullion has been particularly sensitive to moves in the U.S. dollar and a rise in government debt yields, which can undercut appetite for precious metals.

Precious metals traders and other segments of financial markets are awaiting a  May reading of the U.S. consumerprice index due on Thursday morning. A hotterthanexpected April CPI reading, which showed prices rose 4.2 yearoveryear, briefly rattled markets last month.

Chinas official consumer price index for May came in at 1.3 year over year, a up from Aprils reading of 0.9, but below market expectation of 1.6.

Source Marketwatch

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