Investing.com - Gold prices rose on Tuesday morning as the dollar slightly dropped despite higher 10-year U.S. treasury yields.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange was up $4.20, or 0.32%, to $1,328.2 a troy ounce by 11:42AM ET (03:42 GMT).
The U.S. dollar index that tracks the greenback against a basket of six major currencies shed 0.03% to 90.66.
Earlier Tuesday, the dollar rallied along with the higher yields on U.S. Treasuries that hit a four-year high, then started to lose its momentum. The dollar, however, hit a new high since March 1 as United States 10-Year reached 2.99% for the first time in more than four years.
Dollar-denominated assets such as gold are sensitive to moves in the dollar – a gain in the dollar makes gold more expensive for holders of foreign currency and thus decreases demand for the precious metal.
Also weighing on gold prices was weaker demand for safe-haven assets after geopolitical tensions eased following easing U.S-China trade-war fears and amid signs of progress toward peace talks on the Korean peninsula.
U.S. Treasury Secretary Steven Mnuchin said on Saturday he may travel to China to discuss trade-related issues, while North Korea’s leader Kim Jong Un said he might be open to putting nuclear tests on hold.
In other precious metal trade, silver futures gained 0.44% to $16.660 a troy ounce, and platinum futures slipped 0.05% to $924.40 an ounce.