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Gold prices eased on Thursday as traders confronted with rising bond yields globally.

Spot gold fell 0.6 percent to $1,794.81 per ounce, while U.S. gold futures were down 0.3 percent at $1,792.90.

Euro zone bond yields continued their rise as investors position for a sustained global recovery.

Yields on the 10-year U.S. Treasury note rose 3 basis points to its highest level in a year amid recovery bets and prospects for more U.S. stimulus.

Higher yields increase the opportunity cost of holding gold, which pays no interest.

The dollar remains on the back foot on improved risk appetite after Fed’s dovish message.

On Wednesday, Federal Reserve Chair Jerome Powell affirmed the Fed’s policy commitment in a second day of testimony to legislators in Washington.

He downplayed the risks of inflation and reaffirmed his view that the world’s largest economy needs support.


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