On Tuesday, May 15, the value of the troy ounce of gold dropped to a weekly low. The increase in the yield of US bond reduced the demand of investors for precious metal.
Gold futures on the COMEX New York Mercantile Exchange fell by $7.60 to $1,310.60 a troy ounce, the lowest level from May 8.
Gold started dropping after the yield on 10-year U.S. Treasury notes ticked up to 3.025%, the highest level in three weeks. A rise above the high of 3.035% would take it to its highest mark since 2014.
The increase in the US Treasury yield can lead to a drop in demand for gold and other raw materials that do not bring profit.
U.S. Treasury yields were boosted by easing trade tensions between the U.S. and China. Let us recall that Donald Trump pledged to help Chinese technology company ZTE to resume work. In April, the White House barred U.S. companies from selling software and electronic components to ZTE which practically stopped the work of the company.
The dollar index, which tracks the strength of the dollar against a basket of six currencies, the main trading partners of the United States, rose 0.04% to 92.60.
The growth of the dollar reduces the attractiveness of gold for holders of other currencies.
At that time, the value of silver futures fell by 1.11% to $16.46 per ounce, platinum - by 0.8% to $907.60. Copper lost 0.26% of its value, sagging to $3,085 per pound.
