Gold Falls 0.3% as US Treasury Yields Dented
Gold prices edged lower on Thursday as higher U.S. Treasury yields dented the metal’s appeal, although losses were limited by a weaker dollar and Federal Reserve Chairman Jerome Powell’s dovish comments.
Spot gold fell 0.3% to $1,798.71 per ounce by 0059 GMT. U.S. gold futures gained 0.2% to $1,801.20.
Powell, testifying before the House of Representatives Financial Services Committee, continued adding weight to the U.S. central bank’s promise to get the economy back to full employment, and to not worry about inflation unless prices begin rising in a persistent and troubling way.
Benchmark U.S. Treasury yields hovered near a one-year peak hit in the previous session. Higher yields increase the opportunity cost of holding non-yielding bullion.
The dollar languished near three-year lows versus riskier currencies.
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SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.4% to 1,106.36 tonnes on Wednesday from 1,110.44 tones on Tuesday.
Silver slipped 0.7% to $27.79 an ounce. Platinum fell 1.1% to $1,254, while palladium eased 0.1% to $2,433.33.