2021.10.0518:39:00UTC+00Gold Futures Settle Lower As Dollar, Treasury Yields Rise

Gold futures snapped a three-day winning run and settled lower on Tuesday as the dollar rebounded from recent losses and treasury yields climbed higher.

The dollar index pared some gains after climbing past 94.00 in the Asian session, but recovered to breach the mark again in the New York session. However, after rising to 94.07, the index dropped to 93.85 before edging up to 93.90, netting a gain of about 0.14%.

The yield on U.S. 10-year Treasury Note climbed to around 1.525%, rising from $1.481 in the previous session.

Gold futures for December ended down by $6.70 or about 0.4% at $1,760.90 a barrel, coming off a low of $1,748.60.

Silver futures for December ended lower by $0.036 at $22.608 an ounce, while Copper futures for December settled at $4.1925 per pound, down $0.0460 from the previous close.

A report from the Institute for Supply Management showed activity in the U.S. service sector unexpectedly grew at a slightly faster pace in the month of September.

The ISM said its services PMI inched up to 61.9 in September from 61.7 in August, with a reading above 50 indicating growth in the service sector. Economists had expected the index to edge down to 60.0.

A separate report released by the Commerce Department showed the U.S. trade deficit widened to $73.3 billion from a revised $70.3 billion in July. Economists had expected the trade deficit to increase to $70.5 billion from the $70.1 billion originally reported for the previous month.

The wider trade deficit came as the value of imports jumped by 1.4% to $287.0 billion, while the value of exports rose by 0.5% to $213.7 billion.

Investors looked ahead to the crucial jobs data from the Labor Department. The data, to be released on Friday, is expected to show an increase in addition of jobs.