Gold Falls Beyond $1800 as U.S. Treasury Yields Rise

Gold prices fell beyond $1800 to on Tuesday as government bond selling accelerated, leading to a sharp rise in long-term interest rates.

Also, rapid tests and vaccination, which would allow the UK's hospitality sector to reopen, pushed gold prices near 2-week lows at $1793. Gold prices fell by more than $24 upon settlement, with the increase in US bond yields.

The yellow metal was under pressure as US bond yields rose to their highest level in 11 months and risk appetite increased. The approval of the AstraZeneca and Oxford vaccine by the World Health Organization (WHO)pushed the precious metal's price even further.

Economic data revealed that industrial activity in New York rose to the highest level in 7 months this month. Upon settlement, the price of gold futures contracts for April delivery dropped by 1.3% to $1799 an ounce.

By the end of trading, the spot price for the yellow metal was down 1.2% to $1796.01 an ounce. During the same period, the main dollar index, which measures the currency's performance against 6 major currencies, settled at 90.52.