Gold falls in price slightly amid strengthening dollar

Gold prices fell slightly on June 20 morning amid a strengthening dollar and rising US government bond yields, Report informs referring to the auction data.

The price of August gold futures on the New York Comex exchange fell by $1.2 (0.06%) to $1,960.85 per troy ounce. July futures for silver also fell 0.34% to $23.938 an ounce.

On June 20, the dollar index (the exchange rate against a basket of currencies of six US trading partners) increased by 0.05% to 102.57 points. Thus, the growth of the dollar traditionally puts pressure on gold quotes, as it makes the metal less accessible to holders of other currencies.

Also, the decline in gold quotes contributes to the growth of yields of US government bonds. Thus, the yield on ten-year government bonds (US Treasuries) is growing to 3.802% from the level of the last close of 3.772%. US government bonds are a ‘safe investment’ alternative to gold, so their quotes, as a rule, have multidirectional dynamics.