Gold price falls amid strengthening of US dollar, growth of US government bond yields

Gold fell slightly on Wednesday morning amid a strengthening dollar and rising US government bond yields, Report informs.

The price of August futures for gold on the New York Comex exchange fell by $0.75 (0.04%) to $1,946.95 per troy ounce. July futures for silver also fell - by 0.4%, to $23.142 per ounce.

On Wednesday, the dollar index (the exchange rate against a basket of currencies of six US trading partners) increased by 0.05% to 102.58 points. So, if the dollar strengthens, the precious metal becomes a less profitable asset, which will lead to a decline in its value.

Also, the decline in gold quotes contributes to the growth of yields of US government bonds.