NEW YORK: Gold prices fell as much as 1.7% on Tuesday to their lowest in more than a week on stronger US Treasury yields while platinum eased in choppy trading after a rally that took it to a 6-1/2 year high.

Spot gold fell 1.1% to $1,798.46 an ounce by 11:52 a.m. EST (1652 GMT), having touched its lowest since Feb. 4.

US gold futures fell 1.1% to $1,804.00.

“Gold is shifting away from being an inflation hedge asset, as has been the case for most of 2020, into a safe-haven asset once again,” said TD Securities commodity strategist Daniel Ghali, pointing to rising Treasury yields.

Bullion is considered a hedge against inflation expected from massive economic stimulus that has also pushed US 10-year Treasury yields higher, increasing the opportunity cost of non-yielding gold.

Also weighing on gold, US stock indexes hit all-time highs on optimism surrounding a $1.9 trillion US coronavirus relief package.

Meanwhile, platinum fell 1.9% to $1,277.81 an ounce after touching its highest since September 2014.

TD Securities’ Ghali said the drop was attributable to profit-taking after a rally driven by speculation over the potential for platinum demand to rise as a result of greener technologies.

The metal, which is used in automobile catalytic converters to limit exhaust emissions, has rallied about 20% this year on hopes that a recovery in the car market and a push for cleaner energy would spur demand__reuters

Spot silver fell 1.5% to $27.18 an ounce while palladium rose 0.1% to $2,390.36 after peaking at a one-month high of $2,424.26__reuters