Make Kitco Your Homepage

Gold rises on weaker U.S. Treasury yields, dollar

Kitco News

March 10 (Reuters) - Gold prices inched higher on Wednesday, adding to a 2% jump in the previous session after a retreat in U.S. Treasury yields and the dollar lifted the metal's appeal.

Spot gold was up 0.1% to $1,716.51 per ounce by 0041 GMT, after hitting its lowest since June 5 at $1,676.10 on Monday. U.S. gold futures eased 0.2% to $1,714.20.

U.S. Treasury yields dropped overnight, pulling back from a recent 13-month high on the benchmark note, as investors bought back bonds in a selloff that market participants have deemed overextended.

Lower yields reduce the opportunity cost of holding the non-interest paying gold.

The dollar on Tuesday slipped from its 3-1/2-month high as U.S. yields stabilized ahead of key inflation data and Treasury auctions this week.

The U.S. House of Representatives voted on Tuesday to advance President Joe Biden's $1.9 trillion COVID-19 relief bill, clearing the way for the measure to be considered on Wednesday, when it is expected to pass.

(Reporting by Sumita Layek in Bengaluru; Editing by Rashmi Aich)

Outside U.S. +91 8061822693; Reuters Messaging:

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.