FX.co ★ Gold Weakens Amidst A Firm Dollar

Prices of the yellow metal declined on Thursday amidst continuing strength in the greenback.

The Dollar strengthened in the backdrop of a surge in treasury yields and fears of renewed inflationary pressures on the commodity front, following Russia's exit from the Black Sea grain deal.

The Dollar Index (DXY), a measure of the Dollar's relative strength against a basket of six currencies has increased 0.21 percent overnight to 100.50. The day's range was between a low of 100.02 and a high of 100.55.

Fears over how the surge in treasury yields across regions and tenors could sway monetary policy decisions by the Federal Reserve, the European Central Bank and the Bank of England that are due in the coming weeks, exacerbated the bearish sentiment for the yellow metal.

The CME FedWatch tool currently shows a 99.8 percent probability for a rate hike of 25 basis points in the review due on July 26. The probability for another quarter-point rate hike in September is currently assessed at 18 percent.

Gold Futures for August settlement has moved 0.07 percent lower to trade at $1,979.35. The day's trading range has been between $1,973.15 and $1,989.75.

Spot Gold shed 0.04 percent to trade at $1,976.09 per troy ounce. The day's trading range has been between $1,972.51 and $1,987.51.