Gold Futures Settle At Two-Week Low

Gold futures settled lower on Wednesday as a firm trend in equity markets and rising bond yields dimmed the demand for the precious metal.

However, the dollar's weakness limited gold's decline. The dollar index slipped to 92.75, giving up nearly 0.25% from Tuesday's closing level. The index touched a high of 93.19 in the Asian session.

The yield on 10-year U.S. Treasury Note rose to 1.282%, while the yield on the 30-year Treasury bond rose 7 basis points to 1.939%.

Gold futures for August ended down by $8.00 or about 0.4% at $1,803.40 an ounce, the lowest settlement in about two weeks.

Silver futures for September moved up $0.260 or about 1% to settle at $25.255 an ounce, while Copper futures for September settled at $4.2720 per pound, gaining $0.0090 or 0.2%.

Traders continued to track updates on the Covid front. According to the WHO, the delta variant of the coronavirus is occurring across the world. The variant first identified in India is now estimated to make up 83% of all sequences Covid-19 cases in the U.S.

Among Asian countries, South Korea and Thailand have reported record infections. In Japan, the government's top COVID-19 advisor reportedly said new cases in Tokyo could hit a record in early August, before the end of the Olympics.

Traders looked ahead to the European Central Bank policy meeting, scheduled to take place on Thursday. Recently, ECB President Christine Lagarde hinted at a change to the bank's forward guidance, reflecting the slightly higher tolerance for inflation in the new strategy.

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