The US dollar rose on Tuesday, approaching the two month high position that hit last week

Gold prices hovered around a five month low as the strengthening US dollar and rising bond yields weakened its attractiveness

The US dollar rose against a basket of currencies on Tuesday, approaching the two month high position that hit last week. Traders are waiting for the Jackson Hole seminar to be held later this week, and gold prices are hovering around a five month low as the strengthening US dollar and rising bond yields weaken the attractiveness of gold.

Gold prices hovered near a five month low on Tuesday as the strengthening US dollar and rising bond yields weakened gold's attractiveness, while market focus shifted to the Jackson Hole seminar held later this week to seek more clues about the interest rate outlook.

The yield of the benchmark 10-year US Treasury bond fell within the day. However, it is still close to its highest level in 15 years. At the same time, the US dollar rose 0.2%, making gold more expensive for other currency holders and limiting its upward potential.