Gold eased on Thursday, surrendering early gains as signs this week that central banks may scale back their ultra-loose monetary policy pushed bond yields higher, though a decline in the dollar to its lows for the year lent support.
…”Gold is caught between the weaker dollar and higher real yields,” UBS analyst Joni Teves said. “That’s feeding through to price action.”
“There has been a shift towards more hawkishness (among central banks),” she said. “We have been flagging the potential for European rates to head higher and exert pressure on global yields.”