Gold slides to lowest level in almost 8 weeks

Gold prices declined in North American trade on Tuesday, sliding to the lowest level in around eight weeks amid fading demand for safe-haven assets.

Comex gold futures fell $3.20, or about 0.3%, to $1,224.00 a troy ounce by 8:15AM ET (12:15GMT). Meanwhile, spot gold was at $1,223.50.

The yellow metal hit its lowest since March 16 at $1,221.00 on Monday as safe-haven demand ebbed after market-friendly centrist Emmanuel Macron beat far-rightist Marine Le Pen to clinch the French presidency.

The widely-watched CBOE Volatility Index, which measures implied volatility of U.S. stock options and is often seen as an investor fear gauge, closed down almost 8% at 9.77 on Monday, its lowest since December 1993.

Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was stronger for a third consecutive session, gaining 0.4% to a more than two-week high of 99.40 in New York morning trade.

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The 10-year Treasury yield rose 1.8 basis points to 2.392%.

Markets are pricing in around an 82% chance of a hike at the Fed’s June meeting, according to’s Fed Rate Monitor Tool.

The metal is highly sensitive to rising U.S. interest rates, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.

Also on the Comex, silver futures dipped 2.4 cents, or 0.15%, to $16.23 a troy ounce. It fell to an overnight low of $16.14, a level not seen since January 3.

Elsewhere in metals trading, platinum slumped 1.2% to $908.65, while palladium inched down 0.3% to $803.45 an ounce.

Copper futures tacked on 0.2 cents to $2.496 a pound, not far from Monday’s four-month low of $2.472, amid renewed concern over China’s economic health.

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