MTECHTIPS :-Gold Prices Hit Fresh 5-Week Lows on Stronger Dollar

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MTECHTIPS :-Gold Prices Hit Fresh 5-Week Lows on Stronger Dollar

MTECHTIPS-Gold prices extended early losses on Monday, falling to fresh five-week lows pressured lower by the stronger dollar and easing geopolitical tensions. Gold futures for June delivery on the Comex division of the New York Mercantile Exchange were down $9.90 or 0.75% to $1,313.60 a troy ounce by 09:18 AM ET (13:18 GMT), the lowest level since March 21. The dollar moved higher, regaining ground after Friday’s pullback from three-and-a-half month peaks. The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.39% to 91.66. A stronger U.S. currency makes dollar denominated gold more expensive for overseas buyers. The dollar index climbed 1.37% last week, boosted by rising U.S. yields and the prospect of a faster pace of rate hikes by the Federal Reserve this year. The yield on 10-year U.S. Treasury notes rose above the psychologically important 3% level for the first time since 2014 last week, amid rising inflation expectations. The yield subsequently backed off that level and was last at 2.957%. The recent rise in Treasury yields has stoked investors’ worries about higher interest rates, which tend to make non-yield bearing gold less attractive to investors