Price action

Market drivers

"Gold has been steadily declining since the middle of July and that bearish trend looks like it isn't quite over as king dollar returns," said Edward Moya, senior market analyst at OANDA, in emailed commentary.

Prices of the yellow metal have suffered over the past month as the U.S. dollar has climbed against some of its rivals, while global bond yields have risen. The yield on the 10-year Treasury note BX:TMUBMUSD10Y rose to its highest intraday level since November on Tuesday, up 4 basis points to 4.229%. The ICE U.S. Dollar Index DXY, fell by 0.2% to 103.03.

A stronger dollar makes gold more expensive for buyers using other currencies since the yellow metal is typically priced in dollars. Rising bond yields make bonds a more compelling investment relative to precious metals by boosting returns for investors, while gold offers no yield.

Investors in the U.S. will receive an update on retail sales for July on Tuesday, along with other economic data. Earlier, China's central bank delivered surprise policy easing by cutting a set of policy interest rates after more weak economic data on retail sales and industrial production in the world's second biggest economy in July.

-Joseph Adinolfi

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08-15-23 0747ET