(RTTNews) - Gold fell below $4,550 an ounce on Tuesday as Treasury yields edged up and the dollar steadied after a decline in the previous session on expectations that the Federal Reserve will keep interest rates higher for longer.
Oil prices eased from two-week highs but remained at elevated levels, weighing on bullion's traditional safe-haven appeal.
Spot gold fell 0.6 percent to $4,539.58 an ounce while U.S. gold futures for June delivery were down 0.3 percent at $4,544.17.
The yield on the U.S. 30-year bond edged up by one basis point to 5.13 percent on worries that the Federal Reserve may keep interest rates higher for longer. The Fed funds futures market is currently pricing in an increase in rates as soon as December.
Overnight, finance ministers and central bank chiefs from the G7 nations acknowledged mounting concerns over public debt and bond market volatility.
The dollar held steady as a rout in the bond market paused for breath. Investors pinned hopes for a U.S.-Iran ceasefire deal after Tehran reportedly sent a new peace proposal via Pakistan and U.S. President Donald Trump said he has postponed a planned attack on Iran at the request of Qatar, Saudi Arabia and the United Arab Emirates.
Trump said there was a "very good chance" Washington and Iran could reach a deal to stop Tehran from developing a nuclear weapon, adding the U.S. military has been instructed to go forward with a full, large-scale assault on Iran in the event that an acceptable Deal is not reached.
As part of a revised negotiation framework with Tehran, it was said the U.S. has agreed to temporarily suspend sanctions on Iran's oil sector.
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