Gold futures hit 2-month low as greenback rises ahead of Fed decision

CHICAGO, May 1 (Xinhua) --- Gold futures on the COMEX division of the New York Mercantile Exchange ended at a two-month low on Tuesday, as the U.S. dollar rose and U.S. Treasury yields climbed a day ahead of the Federal Reserve's monetary-policy decision.

The most active gold contract for June delivery dropped 12.4 U.S. dollars, or 0.94 percent, to close at 1,306.8 dollars per ounce.

The U.S. dollar index, which measures the buck against six rivals, went up 0.66 percent to 92.451 as of 2000 GMT.

Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall.

U.S. Treasury yields also climbed, with the 10-year Treasury note yield up 3 basis points at 2.963 percent. Bond prices and yields move inversely. Higher Treasury yields can spell weakness for gold, which like other commodities offers no yield.

As for other precious metals, silver for July delivery fell 27.4 cents, or 1.67 percent, to settle at 16.127 dollars per ounce. Platinum for July was down 10.2 dollars, or 1.13 percent, to close at 894.2 dollars per ounce. Enditem