NEW YORK: Gold slipped to a two-week low on Wednesday as strength in the dollar and higher U.S. Treasury yields outweighed the boost to bullion from deepening concerns about global economic growth.

Spot gold was down 0.5% at $1,785.24 per ounce by 10:27 am EDT (1427 GMT). U.S. gold futures fell 0.5% to $1,790.30.

“It’s frustrating to gold market bulls that even though there’s some keener risk aversion in the marketplace this week, the gold market sold off,” said Jim Wyckoff, senior analyst at Kitco Metals.

Worries about a Delta variant-driven slowdown in economic growth have shaken equities this week, but flows into gold have been limited by firmer bond yields and a rise in the dollar that has made bullion costlier for holders of other currencies.

“Gold’s limited gains in 2021 despite low rates and high inflation prints does not bode well for its prospects and we see gold prices to average $1,750 on average in 2022 as investment flows drop further,” Societe Generale analysts said in a note. Non-yielding gold tends to gain in a low interest-rate environment, while some investors also view the metal as a hedge against higher inflation that could follow stimulus measures.

Following the disappointing U.S. non-farm payrolls last week, precious metal traders will focus on NY Fed President John Williams’ speech for clues on whether the Fed could shift the messaging on its tapering countdown away from this year, TD Securities said in a note.

Investors will also eye a European Central Bank meeting on Thursday for hints on whether it may roll back economic support.

Elsewhere, silver fell 1.3% to $23.98 per ounce, platinum eased 1.9% to $979.60 and palladium was down 3.1% at $2,299.68.