The rise in gold prices and the fall of the dollar

Gold prices rose on Tuesday, supported by a weak dollar, but higher US Treasury yields and fears that the Federal Reserve would tighten monetary policy more than expected limited gold's gains.

And the price of gold in spot transactions rose 0.1 percent to $ 1780.60 by 0644 GMT, while US gold futures rose 0.2 percent to $ 1782.40.

The dollar index fell 0.1 percent, reducing the cost of buying gold for buyers in other currencies.

Ten-year US Treasury yields rose, extending gains last night, adding to the opportunity cost of buying non-yielding gold.

And policy makers at the Federal Reserve (the US central bank) are likely to speed up tapering of stimulus measures at their meeting next week after data showed that unemployment fell last month.

The US CPI report due on Friday may be vital in forecasting the Fed's next move.

With regard to other precious metals, silver rose in spot transactions 0.2 percent to $ 22.40 an ounce.

Platinum rose 0.3 percent to $ 940.50, and palladium fell 0.6 percent to $ 1844.01.

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