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Gold prices eased on Tuesday, heading towards a second straight monthly decline, as a rise in the dollar and US Treasury yields dented the metal’s appeal despite concerns over surging inflation.

Spot gold dialed back 0.7% to $1,843.37 per ounce by 12:15 p.m. ET, recording a loss of 2.7% for the month of May. US gold futures also fell 0.7%, trading at $1,844.90 per ounce in New York.

[Click here for an interactive chart of gold prices]

The dollar index meanwhile rose 0.2%, making gold slightly more expensive for holders of other currencies. Benchmark 10-year Treasury yields also jumped, dimming the appeal of the non-yielding bullion. 

On Monday, US Federal Reserve Governor Christopher Waller advocated for the central bank to raise interest rates at every meeting until inflation is curbed, winding back expectations of a pause in hikes after June and July.

“There is this expectation from the market that Biden might press the Fed to do more to fight these inflationary pressures and as a result we’ve seen a fairly steady dollar and some light pressure on the gold market,” David Meger, director of metals trading at High Ridge Futures, told Reuters.

Later in the day, US President Joe Biden is expected to meet with Fed Chair Jerome Powell, where they will likely discuss the historic inflation and the state of the US and global economy.

(With files from Reuters)