Gold prices fell for a second consecutive day

[gnutrade.satya]

The dollar gained, encouraged by hope of improving US economic growth and extended fall in the US Treasury prices fueled profit-taking as investors were seeking better yield returns. The combined effect of those factors drove profit-taking in precious metals, sensitive to both interest rates and the dollar. Thus Gold prices fell for a second consecutive day.
James Steel, chief commodities analyst at HSBC said: "The positive view on US growth engendered by the tax-cut agreement and the rest of the Obama and congressional Republican package triggered a surge in US bond yields. Higher rates will weigh on gold prices ... which could be vulnerable to a sharp sell-off as in the run-up to the holiday period trading volume is likely to diminish."