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Gold prices were flat to slightly higher on Tuesday as U.S. Treasury yields edged lower ahead of testimony by top U.S. policymakers later in the day.

Spot gold edged up 0.1 percent to $1,740.14 per ounce while U.S. gold futures were up 0.1 percent at $1,740.10.

Investors await a closely watched Congressional appearance by U.S. Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen later in the day for clues on whether they will seek to slow rising yields.

In remarks prepared for the congressional hearing, Powell said that the U.S. recovery had progressed “more quickly than generally expected and looks to be strengthening”.

Germany’s 10-year yield, the benchmark for the bloc, was down 2 basis points amid a new bond sale from the European Union.

Concerns around fresh Covid-19 cases in Europe and escalating tensions between Beijing and the west also supported gold.

German Chancellor Angela Merkel and regional leaders of 16 federal states agreed late Monday to impose a hard lockdown during Easter amid an exponential growth in the number of coronavirus cases in the country, in what is being called a “third wave”.

China has decided to introduce sanctions against several European officials and entities after new sanctions were issued by a coalition of western nations over Xinjiang abuses.


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