BENGALURU, April 25, 2018 (Reuters) - Gold prices dropped on Wednesday as benchmark US bond yields poked above the three per cent level and lifted the dollar to its highest in more than three months. Spot gold was down half-a-per cent at $1,323.59 per ounce, as of 07:59 GMT. The yellow metal rose 0.5 per cent on Tuesday to break a three-session losing streak. US gold futures dropped 0.6 per cent to $1,325 per ounce. Higher interest rates tend to boost the dollar and push up bond yields, putting pressure on the greenback-denominated gold. The dollar index, which measures the greenback against a basket of currencies, rose 0.4 per cent to 91.117, its strongest since Jan. 12. "The strength of the dollar index and rising Treasury yield confirm that the Fed's hawkish stance is not going to change anytime soon," Naeem Aslam, chief market analyst, Think Markets. "However, I do believe that with sell-off in the equity market, investors would have to put their money (elsewhere). The safe-haven gold would attract that money flow," Aslam said. Gold is often seen as an alternative investment during times of political and financial uncertainty.
