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

Reuters

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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: Sumita.Layek.thomsonreuters.com@reuters.net))

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