Gold futures traded modestly higher Tuesday as the U.S. dollar lost ground and as government bonds in the U.S. and Europe tumbled, spurring a modicum of safe-haven demand.
Gold for June delivery on Comex GCM5, +0.62% rose $10, or 0.8%, to $1,193 an ounce, while July silver SIN5, +0.40% advanced 10.1 cents, or 0.6%, to $16.415 an ounce.
European government bond prices continued to retreat, pushing up yields, with U.S. Treasurys following suit. The yield on the 10-year Treasury TMUBMUSD10Y, +0.40% traded above 2.33%, its highest level since November.
Rising bonds yields are typically negative for gold, with commodities that produce no yield suffering by comparison.
But the bond market selloff has spilled over to cause weakness in world stock markets, wrote Jim Wyckoff, analyst at Kitco Metals.
Indeed, stock-index futures traded lower, with the Dow industrials on track to open with a triple-digit loss.