Gold prices were holding steady on Wednesday in Asia as the dollar remained supported near three-and-a-half week highs, dampening the appeal of the yellow metal.
Gold futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, were at $1,273.45 per ounce at 1:10 AM ET (05:10 GMT) after ending the previous session 0.2% lower.
The dollar index, which measures the greenback against a basket of six major currencies, was at 97.942, just below Tuesday’s peaks of 97.953, the highest level since April 26. The index is up 2% for the year to date.
The greenback was supported by higher U.S. Treasury yields, which moved higher in response to a recovery in equities after the U.S. temporarily eased restrictions on Chinese telecommunications giant Huawei.
A stronger dollar tends to act as a headwind for gold, making the dollar-denominated metal more expensive for holders of other currencies.