Gold Edges Higher Even as US Dollar and Yields Move Up

Gold edged higher early on Tuesday despite a higher dollar and bond yields, with the metal remaining rangebound even as inflation worries ease with lower energy prices. Gold for August delivery was last seen up $13.80, or 0.3%, to $4,181.30 per ounce. The price of the precious metal has stayed above $4,000 per ounce for much of the last month as energy prices ease following the June 17 ceasefire agreement between Iran and the U.S. Oil has returned to prewar levels, lowering concerns rising inflation would force central banks to lift interest rates, though yields remain elevated after the Federal Reserve last month warned it may need to increase the benchmark before year end. "Bullion remains rangebound as it attempts to shift from capitulation to consolidation, supported by softer US data and a less hostile dollar and yield backdrop," Saxo Bank said in a note. "However, with short-dated US yields still signalling a risk of a rate hike later this year, a further easing in rate expectations is needed to support a more durable recovery." The dollar was steady early, with the ICE dollar index last seen up 0.06 points to 100.91. Treasury yields were higher, with the US two-year.