Arabica has been easing off a 4-1/2-year high touched this month with the return of rains in top arabica producer Brazil and coffee again flowing to ports in No. 2 producer Colombia.
Spot gold fell 0.7pc to $1,863.98 per ounce by 1:43 p.m EDT (1743 GMT) after hitting its lowest level since May 17 at $1,848.49. U.S. gold futures settled 0.7pc down at $1,865.9.
The Treasury Department announced auctions next week for $58 billion of three-year notes, $38 billion of 10-year notes, and $24 billion of 30-year bonds.
The currency has tumbled 17pc since mid-March when President Tayyip Erdogan, long a critic of high interest rates, ousted a hawkish and well-respected central bank chief.
Spot gold rose 0.8pc to $1,896.74 per ounce by 1:42 p.m. EDT (1742 GMT), having earlier hit its highest since Jan. 8 at $1,898.40. U.S. gold futures settled up 0.7pc at $1,898.
Spot gold was 0.9pc higher at $1,884.46 by 12:17 p.m. EDT (1617 GMT), having earlier hit its highest since Jan. 8 at $1,889.75. U.S. gold futures gained 0.9pc to $1,885.50.
The blue-chip index ended up 0.8pc, with Anglo American one of the biggest boosts to the index, gaining 3.2pc on plans to spin off its thermal coal assets in South Africa.
All three major U.S. stock indexes gained some ground and the S&P 500 and the Dow were last in positive territory, with economically-sensitive small caps and transports lagging.
The number of new confirmed coronavirus cases in Germany rose the most since Jan. 9, while the number of people with COVID-19 in French intensive care units set a high for 2021.
A break above the $1,892 area with support from a dovish U.S Federal Reserve and a weaker dollar could signal further upside with resistance at $1,910 ahead, Yang said.
Investors bought riskier assets across the board, sending global equities to new peaks, oil prices to a nine-month high and the dollar to its weakest since April 2018.
Spot gold was up 0.5pc at $1,862.30 an ounce by 1023 GMT after touching its highest since Dec. 9 at $1,865.14. U.S. gold futures rose 0.6pc to $1,866.20.
Powell has said that making sure the financial system is “resilient” against risks, including climate change, fits with the Fed’s congressionally assigned mandates.