Spot gold rises 0.4% as dollar falls

Spot gold rose 0.4% to $1,770. As of 0059 GMT, the 71 per ounce was at 71 per ounce. The US dollar's futures fell by 0.3% to $1,768. On Tuesday, gold lost more than 2% due to rising interest rates and sharp gains in the dollar that sapped appetite for the non-yielding asset and sent prices down psychological support at the $1,800 per ounce level.

The greenback price of gold has become more expensive for buyers holding other currencies in the past session, as safe-haven demand strengthened the dollar to levels last seen in 2002.

On Wednesday, gold found some respite, as the dollar fell 0.1%.

On Tuesday, oil futures tumbled and bond prices went up as investors sought safety after the latest data caused fears of a global economic slowdown.

Benchmark US 10 year Treasury yields fell above an over one month low on Tuesday.

More G 10 central banks raised interest rates in June than any month for at least two decades, and with inflation at multi-decade highs, the pace of policy-tightening is unlikely to increase in the second half of 2022, according to Reuters calculations.

Higher interest rates and bond yields raise the chance of holding bullion, which yields nothing.

Spot silver rose by 0.4% to $19.27 per ounce, while platinum was flat at $865.48 and palladium gained 0.3% to $1,938.