By Gina Lee
Investing.com – Gold inched down on Wednesday morning in Asia, with U.S. Treasury yields continued their fall and put pressure on the yellow metal.
Gold futures inched down 0.03% at $1,733.05 by 11:42 PM ET (4:42 AM GMT), after dropping to $1,706.70, the lowest level since June 2020, on Tuesday. The dollar, which usually moves inversely to gold, inched up on Wednesday.
Benchmark U.S. Treasury yields dropped for a fourth consecutive day after jumping to a one-year high during the previous week, but still near 1.4% levels.
Markets stabilized after investors reacted to the jump with a sharp selloff, but signs of U.S. economic recovery from COVID-19 could lead to another slide in bond and derivative prices.
On the central bank front, officials from the U.S. Federal Reserve, facing a potential bout of inflation this spring thanks to COVID-19 vaccine rollouts and government spending, said on Tuesday said they will nevertheless keep their ultra-easy monetary plans in place. The Fed will also release its Beige Book later in the day.
Investors are also tracking the progress of a $1.9 trillion U.S. stimulus package. Proposed by President Joe Biden earlier in the year, the bill was passed by the House of Representatives during the previous week and is due to be debated by the Senate within the week.
In other precious metals, silver dipped 0.3% and platinum shed 0.3%, while palladium climbed 0.6%.