Gold slips as risk appetite dents appeal

]

BENGALARU: Gold prices fell yesterday as US rate-hike expectations lifted Treasury yields to their highest in a month, while hopes for a progress in Russia-Ukraine peace talks improved risk appetite, denting bullion’s appeal.

Gold is highly sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion. Higher rates, aimed at curbing inflation, also dent gold’s appeal as an inflation hedge.