Spot gold falls 1.4% to $4,504 as dollar, yields weigh

Key Takeaways:

Spot gold fell 1.45% to $4,504.35 a troy ounce in New York trading
COMEX gold futures slipped 0.30% to $4,542.50 an ounce
Gold has dropped about 14% since the Iran conflict began in late February

Spot gold fell 1.45% to $4,504.35 a troy ounce in New York trading on Tuesday, extending its decline as the dollar strengthened and Treasury yields climbed.

Gold has lost about 14% of its value since the Iran conflict erupted in late February, with the metal's traditional haven appeal undermined by rising real yields and a stronger dollar, according to market data compiled by Bloomberg. "If we do get a true agreement between the U.S. and Iran, then I think the market is ready to take off," Sam Stovall, chief investment strategist at CFRA Research in New York, said.

The precious metal touched a session low of $4,482.79 at 02:05 UTC, according to exchange data. COMEX gold futures settled 0.30% lower at $4,542.50 an ounce, having earlier reached a high of $4,615.60 in Asian trading before reversing course. Spot silver declined 1.51% to $76.90 an ounce, while COMEX silver futures rose 1.38% to $77.25 an ounce. COMEX copper futures gained 0.72% to $6.4250 a pound.

The U.S. Dollar Index rose 0.37 to 99.46, supported by repricing of Federal Reserve rate hike expectations after the central bank's May meeting minutes showed most policymakers favored tightening if inflation remained persistent. The 10-year Treasury yield climbed about 4 basis points to 4.615%, increasing the opportunity cost of holding non-yielding bullion. The move lower in gold comes even as the fragile U.S.-Iran ceasefire showed signs of strain, with the U.S. conducting what it called defensive strikes that Iran labeled a "gross violation" of the truce. The gold-silver ratio held near 60, reflecting silver's relative outperformance on the session.

This article is for informational purposes only and does not constitute investment advice.