Gold Holdings Continue to Release, What Happened?

<p>&nbsp;Gold slipped lower to a five-week low, pressured by US 10-year bond yields and a strong US dollar.</p><p><br /></p><p>In the Asian session, the yellow metal moved dismally around $1,905 an ounce, while gold futures were little changed at $1,937 an ounce.</p><p><br /></p><p>The 10-year US treasury yield rose again to its highest level of 4.21% since November last year, while the US dollar, the king of currencies, was at its strongest in a month in early week trading.</p><p><br /></p><p>The precious metal remained under pressure as US consumer and producer inflation showed modest increases in July.</p><p><br /></p><p><br /></p><p>Goldman Sachs now predicts the Federal Reserve will maintain its monetary policy until the second quarter of 2024 before lowering interest rates.</p><p><br /></p><p>Meanwhile in the latest move on Tuesday, China's central bank unexpectedly cut its key policy rate for the second time in three months, in a sign authorities are ramping up efforts to support the recovery.</p><p><br /></p><p>Separately, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.4% to their lowest level since January 2020 on Monday.</p>