Gold prices fell slightly on Thursday as the dollar rose and U.S. Treasury yields climbed amid rising growth prospects.
Spot gold eased 0.2 percent to $1,731.80 per ounce, while U.S. gold futures were down 0.1 percent at $1,730.40.
Treasury yields climbed after Fed Chair Jerome Powell told the Senate Committee on Banking, Housing and Urban Affairs on Wednesday that 2021 was “going to be a very, very strong year in the most likely case.”
Powell said that inflation will move up over the course of this year, but the effect will be neither particularly large nor persistent.
Weekly jobless claims data due later in the day and the outcome of a $62 billion auction of 7-year notes may influence trading as the session progresses.
The dollar hit a fresh four-month high against the euro as Europe faces a surge of coronavirus infections and a slow vaccination roll out.
The European Commission is seeking added controls on vaccine exports as a third wave of coronavirus infections sweeps across much of mainland Europe.
Germany reported its highest number of new coronavirus infections since mid-January, threatening the government’s plans to ease lockdown restrictions.