Gold prices fell to a weekly low on Wednesday, as demand for metal was weighed down by a stronger US dollar and higher Treasury yields. Spot gold traded down 0.3% at $1,944.77 per ounce, after touching a low of $1,947.70. US gold futures were down 0.6% at $1,947.70.

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Prices sank 1.8% on Tuesday, as a stronger dollar and higher Treasury yields eclipsed bullion inflows.

The dollar remained near recent highs, making gold priced in greenbacks less appealing to investors of other currencies. China defied predictions by keeping its benchmark lending rates for corporate and household loans unchanged at their April fixing, despite the fact that Beijing has become more cautious in rolling out easing measures to help a weakening economy.

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Treasury yields in the United States continued to rise to multi-year highs as investors braced for a rate hike by the Federal Reserve as it attempts to rein in surging inflation, reported Reuters. Rising US interest rates and greater yields raise the potential cost of having non-yielding metal, making gold extremely vulnerable.

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Gold prices came within a whisker of surpassing $2,000 per ounce on Monday, as the Ukraine conflict and rising inflation fears drove investors to the shelter of metal.

Spot silver fell 0.6% to $25.00 per ounce, platinum fell 1.3% to $977.93, and palladium rose 0.4% to $2,380.29.

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The oil prices fell 5% overnight due to the US Dollar Index reaching 2-year highs, skyrocketing US government yields, and the International Monetary Fund (IMF) downgrading its growth forecast for 2022 by nearly a percentage point.