Gold prices slipped to their lowest level in nearly two weeks on Monday as the dollar rose on the back of climbing U.S. Treasury yields and as global political concerns eased. Spot gold was down 0.1 percent at $1,333.71 per ounce at 0346 GMT, after earlier touching its lowest since April 10 at $1,331.70. U.S. gold futures fell 0.2 percent to $1,335.50 per ounce. "Gold prices dropped back to the levels of around a week ago, with easing geopolitical tensions, the stronger USD and gains in U.S. rates affecting the market," ANZ analysts said in a note. The dollar traded near a two-week high against a basket of major currencies on Monday, bolstered by rising U.S. bond yields and as concerns eased over global political risks after North Korea said it would suspend nuclear and missile tests, scrap its nuclear test site and pursue economic growth and peace. "We're on another high for the year for dollar yields and it's not boding well for gold," a Hong Kong-based trader said. Yields on benchmark 10-year Treasuries climbed to the highest level since Jan, 2014 on Friday. Higher U.S. bond yields tend to boost the dollar and weigh on greenback-denominated gold. Expectations that the Federal Reserve would raise interest rates three more times in 2018 after strong U.S. data last week, was also supporting the dollar. Gold has held its 50-day moving average around $1,332 an ounce, the trader said. "But I think Europe will look for the bigger picture which is dollar strength and I think they'll look to sell into this rally." Speculators raised their net long positions in COMEX gold by 5,382 contracts to 143,594 contracts in the week to April 17, U.S. Commodity Futures Trading Commission data showed on Friday. Spot gold may test support at $1,326 per ounce, following its failure to break resistance at $1,354, Reuters technical analyst Wang Tao said. Among other precious metals, spot silver fell 0.4 percent to $17.04 per ounce. Platinum was about 0.2 percent higher at $924 an ounce, while palladium rose nearly 0.3 percent to $1032.70 an ounce. Source: Reuters
