Gold prices slipped from a seven-week high on Tuesday as bond yields rose and focus shifted to the European Central Bank meeting on Thursday, which investors hope will give more clarity about stimulus plans for the bloc,
Spot gold slipped 0.2 percent to $1,767.90 per ounce, after having hit $1,789.77 on Monday, it’s highest since Feb. 25. U.S. gold futures were down 0.2 percent at $1,767.85.
U.S. Treasury yields rose as investors awaited the outcome of auctions set to be held for $34 billion of 52-week bills and $40 billion of 42-day bills. Euro zone bond yields followed suit, but moves were contained after a hefty sell-off on Monday.
The rise in yields didn’t echo into the dollar, helping limit the downside for the precious metal.
U.S. President Joe Biden held a meeting 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.
“I am prepared to compromise and prepared to see what we can do and what we can come together on,” Biden said at the outset of the meeting.
Earlier today, China kept its benchmark lending rates unchanged, as widely expected.
The one-year loan prime rate was retained at 3.85 percent and the five-year loan prime rate was maintained at 4.65 percent.