Gold held near its lowest close since March as traders pared expectations for Federal Reserve rate cuts next year and beyond, boosting Treasury yields and the dollar.
Higher bond yields and a stronger greenback, both typically negative for non-interest bearing gold, means bullion is again testing the $1,900 an ounce threshold that it briefly breached at the end of June. The dollar also benefited from a slumping yuan, with a series of disappointing economic figures out of China adding to concern about the nation's sputtering growth.
Despite sluggish demand, the premium of gold in Shanghai to the price in London is increasing, a trend that local traders say is due to government curbs on imports.
Spot gold was little changed at $1906.63 an ounce at 8:18 a.m. in Singapore, after a 0.4% loss on Monday. The Bloomberg Dollar Spot Index was steady, following a 0.3% gain in the previous session. Silver was little changed, while platinum and palladium edged lower.
Source : Bloomberg
