Gold prices dipped on Tuesday as US bond yields and the dollar firmed, with bullion facing a second straight monthly loss for the first time since March 2021.

Higher US 10-year Treasury yields lower the appeal of zero-yield gold, while a stronger dollar makes greenback-priced bullion more expensive for overseas buyers.

Spot gold was down 0.2% at $1,854.20 per ounce, as of 0738 GMT, bringing its monthly loss to 2.2% so far — its biggest decline since last September. US gold futures were nearly flat at $1,858.00.

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“Gold’s performance in May has been disappointing overall, showing immediate weakness at the first sign of dollar strength while being unable to trace out material gains on USD weakness or lower US bond yields,” OANDA senior analyst Jeffrey Halley said.

“That is a warning of more weakness ahead if both reverse,” Halley said, adding that unless there is a sharp escalation in tensions in Eastern Europe, it appears that gold’s downward correction could continue in June.

Gold slid from near $1,900 an ounce at the start of the month to 1,786.60 per ounce on May 16 as the dollar surged to two-decade highs. Bullion has since recovered somewhat.

It performed much better than expected at the start of a Federal Reserve rate-hike cycle, as the market continued to price in recession risks, said Stephen Innes, managing partner at SPI Asset Management.

Higher short-term US interest rates raise the opportunity cost of holding bullion, but gold is also seen as a safe-haven during economic crises, like a recession.

Spot silver dipped 0.4% to $21.85 per ounce, and is down 3.9% so far this month.

Platinum gained 0.6% to $964.50, and is set for its first monthly gain in three at over 3%.

Palladium climbed 2.4% to $2,082.07, but has lost around 11% so far this month, its most since November.