The price of gold fell slightly below $4,400 an ounce. Global long-term treasury yields are rising, and traders are weighing the outlook for US inflation and interest rates. Spot gold saw the biggest drop of 0.7% on Tuesday; the US dollar index remained stable after hitting a three-month low on Monday. Previously, a series of US economic data weakened, and the interest rate swap market is no longer fully priced. The Federal Reserve will raise interest rates again during the year, yet just a week ago, the market still held this expectation. Ole Hanson, head of commodity strategy at Saxo Bank, said in the research report that the weakening US dollar and cooling expectations of interest rate hikes “are expected to eliminate the two major adverse factors that have dragged down the previous rebound in gold prices.”

The price of gold fell slightly below $4,400 an ounce. Global long-term treasury yields are rising, and traders are weighing the outlook for US inflation and interest rates. Spot gold saw the biggest drop of 0.7% on Tuesday; the US dollar index remained stable after hitting a three-month low on Monday. Previously, a series of US economic data weakened, and the interest rate swap market is no longer fully priced. The Federal Reserve will raise interest rates again during the year, yet just a week ago, the market still held this expectation. Ole Hanson, head of commodity strategy at Saxo Bank, said in the research report that the weakening US dollar and cooling expectations of interest rate hikes “are expected to eliminate the two major adverse factors that have dragged down the previous rebound in gold prices.”