UPDATE: Gold prices waver after 2-session decline
By Myra P. Saefong and Mark DeCambre, MarketWatch
Dollar index steadies, bond yields ease back
Gold prices wavered Tuesday between small losses and gains after posting declines in each of the past two sessions.
Treasury yields eased back after recent strength dulled some of gold's luster, but assets considered risky, such as U.S. equities, continued to lure some investors from so-called haven assets.
December gold on Comex was up 90 cents, or less than 0.1%, to $1,276.70 an ounce, after settling at the lowest level since Aug. 8 in the prior session.
U.S. government bond yields got a boost off increased expectations that Federal Reserve Chairwoman Janet Yellen and fellow policy makers are inclined to lift interest rates once more before the end of 2017. The 2-year Treasury yield note , the most sensitive to shifting interest-rate expectations, hit a 52-week high (http://www.marketwatch.com/story/treasury-yields-see-muted-action-after-better-than-expected-manufacturing-data-2017-10-02) on Monday, but it has pulled back to trade more recently at 1.475% Tuesday.
Higher bond yields, which move inversely to prices, can make owning gold, which doesn't offer interest, less appealing. The exchange-traded SPDR Gold Shares ETF (GLD), meanwhile, traded up 0.2%. if th
Mihir Kapadia, CEO of Sun Global Investments, said gold is being pressured by strength in the greenback, and a downturn in physical buying. The dollar, as measured by the U.S. ICE Dollar Index , which gauges the currency against a half-dozen rivals, was almost flat on the day but gained about 1% last week. Dollar strength tends to make buying bullion, which is priced in dollars, less attractive to investors using weaker currencies.