Gold futures steadied in Wednesday trading, a day after the metal got pummeled below $1,300 an ounce to post its lowest settlement of the year on the back of a jolt higher in a benchmark U.S. government bond rate and a resurgent dollar.
The recent jump in Treasury yields and strength in the greenback has served to undercut appetite for precious metals.
June gold edged down by $1.50, or 0.1%, to $1,288.80 an ounce. On Tuesday, gold dropped by more than 2% to mark the lowest settlement for a most-active contract since late December, according to FactSet data. Tuesday’s brisk retreat for the yellow metal also pushed it below its 200-day moving average, which stood at $1,307.80, for the first time since late December.
On Wednesday, the 10-year Treasury note yield was at about 3.07%, holding its ground near its highest level since 2011, while the U.S. dollar, as measured by the ICE U.S. Dollar Index a measure of a half-dozen rival currencies, was up 0.1% at 93.35, after trading as high as 93.63—its highest level of 2018, according to FactSet data.