Gold was down on Tuesday morning in Asia. The dollar, which usually moves inversely to gold, inched up 0.07% on Tuesday, recovering from a near one-month trough hit during the previous session.
Gold Futures inched down 0.07% to $1,805.55 by 11:15 PM ET (3:15 AM GMT) as investors await key central bank meetings this week. A stronger greenback makes gold more expensive for buyers holding other currencies.
Also, benchmark 10-year U.S. Treasury yields rose slightly at 1.6431%, raising non-interest-bearing gold’s opportunity cost.
Investors await policy decisions from the meetings from the Bank of Japan and the European Central Bank (ECB) on Thursday, both due on Thursday. Neither of the central banks are likely to announce a change in policy, though the ECB might address how inflationary pressures could affect policy, according to Reuters.
The U.S. Federal Reserve and the Bank of England are also set to meet next week. However, Bank of England interest rate-setter Silvana Tenreyro said she needed more time to judge how the end of the government’s job-saving furlough scheme was affecting the labour market, which is a signal that she sees no urgency to raise rates, according to Reuters.
In other precious metals, silver fell 0.1% to $24.53 per ounce. Platinum edged 0.1% down and palladium rose 0.2%.