Gold Subdued As Dollar Shows Signs of Life

Gold prices eased slightly on Tuesday, pausing a run that had landed the precious metal at five-month highs, as a still-weak dollar clawed up from recent sharper lows.

Treasury yields TMUBMUSD10Y, -1.43%  turned higher after falling to their lowest since November, dulling some demand for nonyielding gold. But stocks,which typically move opposite of gold, were expected to open lower.

Gold remained lower even as U.S. housing data disappointed, which could spur some murmurs that the Federal Reserve won’t be as aggressive with interest-rate hikes this year as some expected. Higher rates typically pressure gold prices and gold’s upside has been limited somewhat by the climate for higher U.S. rates.

via MarketWatch

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza