Bullion hit alltime high of 2,431.29 per ounce on Friday
10year Treasury yields are close to a fivemonth high
Citi expects gold to regularly test 2,500oz in H2
Palladium falls by 3.3, silver down 2.0

LONDON, April 16 Reuters Gold prices fell on Tuesday, under pressure from high U.S. Treasury yields and as investors locked in profits from a rally that drove the precious metal to a record peak last week.

Spot gold was down 0.3 to 2,375.50 per ounce by 1244 GMT. The metal rose 1.7 on Monday and touched an alltime high of 2,431.29 on Friday.

The yield on 10year Treasury notes was last at 4.63, having surged to a fivemonth high of 4.66 on Monday after U.S. retail sales increased more than expected in March. This prompted the market to increase bets on fewer U.S. rate cuts in 2024. FEDWATCH

Although the longterm correlation between the two gold and the Treasury yields seems to have been abandoned, over the short term, it still influences, said independent analyst Ross Norman. Higherforlonger is one of the biggest headwinds in an otherwise very positive landscape for gold.

Gold is up 15 so far this year after its MarchApril rally, driven by expectations for sustained inflation, safehaven demand amid geopolitical tensions in the Middle East and strong purchases by central banks.

This gold rally looks far from done, Norman added.

Analysts at Citi expect gold to regularly test and breach 2,500 in the second half of 2024 and to hit 3,000 per ounce over the next six18…