Gold futures on Tuesday edged higher, partly supported by a retreat in yields for benchmark 10-year Treasury bonds and a slide in the U.S. dollar.
August gold was trading $2.10, or 0.1%, higher at $1,896.30 an ounce, following a 0.2% decline on Tuesday, which marked bullion’s first decline in three sessions.
Gold has struggled to consistently hold above a price at $1,900 an ounce, a level viewed as resistance for the precious metal in recent trading.
Wednesday’s trading comes as the 10-year Treasury yield hit its lowest level since around March. Meanwhile, the U.S. dollar slipped below a key level at 90, down 0.1%, as gauged by the ICE U.S. Dollar Index.
Bullion has been particularly sensitive to moves in the U.S. dollar and a rise in government debt yields, which can undercut appetite for precious metals.
Precious metals traders and other segments of financial markets are awaiting a May reading of the U.S. consumer-price index due on Thursday morning. A hotter-than-expected April CPI reading, which showed prices rose 4.2% year-over-year, briefly rattled markets last month.
China’s official consumer price index for May came in at 1.3% year over year, a up from April’s reading of 0.9%, but below market expectation of 1.6%.