Gold slips from 1-week peak as rising US bond yields weigh
- The European Central Bank is likely to signal faster money printing on Thursday to keep a lid on borrowing costs but it will stop short of adding firepower to its already aggressive pandemic-fighting package.
Gold prices inched down after hitting a more than one-week peak on Thursday, as elevated US Treasury yields continued to remain a headwind for the precious metal.
FUNDAMENTALS
Spot gold was down 0.1% to $1,725.17 per ounce by 0043 GMT, after hitting its highest since March 3 at $1,727.65 earlier in the session. US gold futures rose 0.1% to $1,724.20.
Benchmark US Treasury yields edged higher, increasing the opportunity cost of holding the non-interest yielding bullion.
US consumer prices increased solidly in February, with households paying more for gasoline, but underlying inflation remained tepid amid weak demand for services like airline travel and hotel accommodation.
The House of Representatives gave final approval on Wednesday to one of the largest economic stimulus measures in US history, a sweeping $1.9 trillion COVID-19 relief bill that gives President Joe Biden his first major victory in office.
The European Central Bank is likely to signal faster money printing on Thursday to keep a lid on borrowing costs but it will stop short of adding firepower to its already aggressive pandemic-fighting package.
Rising Treasury yields, a dollar rebound and commodity prices at multi-year highs may be starting to feed into a tightening of global financial conditions, testing the resolve of central bankers to reverse the moves by providing additional support.
Silver eased 0.2% to $26.10 an ounce. Palladium was down 0.3% to $2,299.85. Platinum fell 0.8% to $1,192.78.
Comments
Comments are closed.