05.10.202110:42:00UTC+00Gold Dips Amid Dollar Strength

Gold prices fell on Tuesday as the dollar rose amid inflation worries and rising tensions between China and Taiwan.

Also, reduced expectations of stimulus and the prospect of interest rate hikes lifted bond yields, weighing on gold.

Spot gold fell 0.8 percent to $1,756.43 per ounce, after having hit $1,770.41 on Monday, its highest since Sept. 23. U.S. gold futures were down 0.6 percent at $1,756.45.

Concerns over China's property sector continued after Fantasia Holdings failed to make $205.7 million payment that was due to bondholders on Tuesday.

U.S. debt ceiling showdown also weighed after President Joe Biden blamed Republicans for not supporting Democratic attempts to raise the ceiling by the October 18 deadline.

Senate Republican leader Mitch McConnell sent a letter to Biden indicating that the GOP would not vote for an increase in the debt ceiling.

Elsewhere, Taiwan has urged Beijing to stop "irresponsible provocative actions" after a record number of Chinese warplanes entered its air defence zone.

"Taiwan must be on alert. China is more and more over the top," Premier Su Tseng-chang told reporters in Taipei. "The world has also seen China's repeated violations of regional peace and pressure on Taiwan."

Beijing views Taiwan as a breakaway province. However, democratic Taiwan sees itself as a sovereign state.