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PRECIOUS-Gold holds near 9-month low on stronger dollar, higher U.S. yields

Published 09/03/2021, 12:03 pm
Updated 09/03/2021, 12:06 pm
© Reuters.
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March 9 (Reuters) - Gold prices hovered around a nine-month low on Tuesday, as a firmer dollar and higher U.S. Treasury yields continued to diminish the metal's appeal.

FUNDAMENTALS

* Spot gold XAU= was little changed at $1,681.81 per ounce by 0036 GMT, after hitting its lowest since June 5 at $1,676.10 on Monday. U.S. gold futures GCv1 climbed 0.1% to $1,679.30.

* U.S. 10-year Treasury yields held at elevated levels, increasing the opportunity cost of holding bullion, which pays no returns, while the dollar scaled an over three-month peak. US/ USD/

* U.S. Treasury Secretary Janet Yellen said on Monday President Joe Biden's $1.9 trillion coronavirus aid package will provide enough resources to fuel a "very strong" U.S. economic recovery. The U.S. House of Representatives will take up by Wednesday the Senate version of the coronavirus relief package, Speaker Nancy Pelosi said. The European Central Bank blamed large bond redemptions for failing to increase the pace of its emergency purchases last week, missing market expectations and adding to doubts about its commitment to supporting a pandemic-stricken, debt-laden economy. The Federal Reserve announced it was extending by three months to June 30 an emergency liquidity facility meant to help lenders extend relief to small businesses under the Paycheck Protection Program. Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD fell 0.5% to 1,063.43 tonnes on Monday from 1,069.26 tonnes on Friday. GOL/ETF

* Silver XAG= rose 0.1% to $25.12 an ounce. Palladium XPD= climbed 0.5% to $2,326.91. Platinum XPT= gained 0.1% to $1,136.57.

DATA/EVENTS (GMT) 1000 EU GDP Revised QQ, YY Q4

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