Investing.com – Gold prices tumbled pressured by easing geopolitical tensions and continued dollar strength on the back of the rising US bond yields.
Gold futures for June delivery on the Comex division of the New York Mercantile Exchange fell by $13.50, or 1.01%, to $1,324.80 a troy ounce.
Gold prices languished at more than two-week lows as the dollar jumped to an eight-week high against a basket of major currencies buoyed by a continued uptick dollar as the 10-Year U.S. Treasury yield neared 3%.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.
Also weighing on gold prices was waning safe-haven demand after geopolitical tensions eased following easing U.S-China trade-war fears and amid signs of progress toward peace talks on the Korean peninsula.
North Korea said at the weekend it would suspend nuclear and missile tests ahead of planned summits with South Korea and the United States. This comes as U.S. President Donald Trump said last week that he hoped a summit with North Korean leader Kim Jong Un would be successful.
Easing U.S.-China tensions also lessened demand for safe-haven gold after U.S. Treasury Secretary Steven Mnuchin said on Saturday he may travel to China to discuss trade-related issues.
In other precious metal trade, silver futures fell 3.13% to $16.625 a troy ounce, while platinum futures fell 0.88% to $923.60 an ounce.
Copper fell 0.93% to $3.11.