The strengthening of the US dollar may trigger a decline in gold prices in line with improving US manufacturing activity.

Commodity Observer Ariston Tjendra said the potential for economic recovery would also encourage market players to shift their investment to riskier assets such as stocks.

"Gold prices are also still under pressure due to the high yields on US government bonds, especially long-term tenors. The 10-year bond yield is still holding at 1.43 percent this morning. The increase in US long-term bond yields is due to potential economic recovery and increase inflation in the US, "he said in Jakarta on Tuesday (2/2).

According to Ariston, today, the gold price is still potentially under pressure from the above fundamental conditions.

"As long as prices move below US$1760, prices still have a chance to test support at US$1,717 (the lowest level on Feb 26, 2021). A break below this support opens the opportunity for the further downward movement to the next range of support in the range of US$1,670 per troy ounce," he said.