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PRECIOUS-Gold eases off seven-week high as U.S. bond yields rise

Published 20/04/2021, 11:09 am
© Reuters.
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April 20 (Reuters) - Gold prices edged lower on Tuesday, moving away from a seven-week high hit in the last session, as a rebound in U.S. Treasury yields overshadowed support from a sagging dollar.

FUNDAMENTALS

* Spot gold XAU= was down 0.1% to $1,768.06 per ounce by 0053 GMT, after hitting its highest since Feb. 25 at $1,789.77 on Monday.

* U.S. gold futures GCv1 were steady at $1,770.70 per ounce.

* Benchmark U.S. 10-year Treasury yield US10YT=RR rose above 1.6% after hitting a five-week low last week, increasing the opportunity cost of holding non-yielding bullion. US/

* Offering some respite to bullion, the dollar index .DXY fell to a more than six-week low against its rivals, making gold less expensive for holders of other currencies. USD/

* U.S. President Joe Biden met on Monday with a bipartisan group of lawmakers who have all served as governors or mayors, as the White House seeks a deal on his more than $2 trillion jobs and infrastructure proposal. Some investors view gold as a hedge against higher inflation that could follow stimulus measures, but higher Treasury yields dull some of the appeal of the non-yielding commodity.

* More than 141.67 million people have been reported to be infected by the novel coronavirus globally and 3,163,124​ have died, according to a Reuters tally. Meanwhile, SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.2% to 1,021.70 tonnes on Monday from 1,019.66 tonnes on Friday. GOL/ETF

* Among other precious metals, silver XAG= eased 0.1% to $25.78 per ounce. Palladium XPD= fell 0.3% to $2,804.09. Platinum XPT= slipped 0.2% to $1,203.57.

DATA/EVENTS (GMT) 0600 UK ILO Unemployment Rate

Feb

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