Gold slips
Gold prices fell on Tuesday under pressure from elevated US treasury yields and a stronger dollar while investors awaited comments from Federal Reserve Chair Jerome Powell for further clues about the interest rate path.
Spot gold was down 0.3 percent at $2,325.3 per ounce by 0952 GMT.
The benchmark 10-year Treasury yield hit a one-month high on Monday and held elevated on Tuesday, making non-yielding bullion less attractive, amid bets on the possibility of a second Donald Trump presidency.
Gold is down 5 percent from a record high of $2,449.89 per ounce it touched on May 20, a rally caused by safe-haven demand driven by geopolitical and economic uncertainty as well as persistent central bank buying, a crucial category of demand.
"We see no major change in the reason for owning precious metals, and with the prospect of US rate cuts during the second half inviting back ETF investors, a net selling group since 2022, we see higher prices at year-end," Saxo Bank said in a note.
Saxo Bank expects gold and silver to hit $2,500 and $35 per ounce, respectively, by the end of 2024. ETFs - global physically backed gold exchange-traded funds - attracted their first inflows in a year in May.
There are, however, signs that central banks are slowing down gold purchases amid this year's high prices, though their demand remains above the pre-2022 level.
Central banks reported about 10 metric tons of net gold buying in May, 56 percent lower month-on-month. Monthly gross purchases fell to around 23 tons and were offset by gross sales of around 12 tons, according to the World Gold Council.
Central banks of Poland, Turkey and India were the largest buyers in May, while Kazakhstan sold 11 tons.
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