WASHINGTON (dpa-AFX) - Gold prices fell on Tuesday, pressured by the dollar's gains and higher U.S. Treasury yields amid bets for a Fed policy rate hike as soon as March.
Spot gold dropped half a percent to $1,809.65 per ounce, while U.S. gold futures were down 0.4 percent at $1,809.20.
Two-year yields, which track short-term rate expectations, crossed 1 percent for the first time since February 2020, reflecting expectations for a Fed policy rate hike as soon as March.
Treasuries dropped across the curve, pushing two-year and 10-year yields up to levels last seen before the pandemic roiled markets.
Earlier in the day, the Bank of Japan kept its monetary policy unchanged, but lifted its inflation forecast reflecting rising energy prices and other items.
The board, governed by Haruhiko Kuroda, voted 8-1, to hold the interest rate at -0.1 percent on current accounts that financial institutions maintain at the central bank.
With regard to the risk balance, risks to economic activity are skewed to the downside for the time being, and risks to prices are generally balanced, the bank said.
In economic releases, New York Fed's empire manufacturing survey and U.S. NAHB housing market index for January are set to be released in the New York session.
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