Gold prices continued to decline to an 8-month low on Tuesday, as the strengthening of the US dollar, backed by high treasury yields, curbed the pull on the precious metal.
Ahead of the European session, the price of gold moved weakly around the $ 1,718 per ounce level after plunging low to touch the $ 1,707 price in the Asian session. Meanwhile, gold futures fell at $ 1,715 an ounce (2.35pm Malaysian time).
Although the benchmark U.S. Treasury yield was down from a one-year high last week, it is still at a high level and continues to support the US dollar to stay at a four-week high.
The readings of economic data and the optimistic US economic outlook for economic recovery are driven by large stimulus packages and vaccine launches, keeping investors away from safe-haven assets.
US ISM survey manufacturing PMI data beat market expectations by rising to 60.8 in January, the strongest expansion in manufacturing activity since February 2018.
This encouraging figure further strengthened the greenback dollar trade and weakened the gold precious metal.
