Gold prices slipped on Tuesday after reaching a seven-week high in the previous session, as support from the weaker dollar was supported by an increase in the US Treasury.
After hitting a high of $ 1,789.77 on Monday, February 25, spot gold was down by 0% to 0245 GMT, up 0.2% to $ 1,766.32 an ounce.
US gold futures slipped 0.3% to $ 1,766.10 announce.
Daily FX currency strategist Ilya Spivak said, “Against the backdrop of rising gold yields, higher yields occurred yesterday. But, yields did not rise in dollars. The greenback’s tarnished performance is supportive to gold.”
Benchmark 10-year US Treasury yields rose more than 1.6% last week after hitting a five-week low, raising the opportunity cost of holding non-yielding bullion.
US President Joe Biden met Monday with a bipartisan group of lawmakers who have all served as governors or mayors, as the White House signed a deal on a proposal for more than $ 2 trillion in jobs and infrastructure .
Gold is seen as a hedge against inflation that may follow stimulus measures, but higher treasury yields have slowed some of the appeal of non-yielding commodities this year.
Spivak of DailyFX said, “As it comes to inflation, the more inflation we get and the less the Federal Reserve can ignore gold … technically, the gold trend is still low.”
Although the US central bank has reiterated its stance to maintain monetary policy for some time, Fed officials have said that any increase in inflation is likely to be temporary.
Giving some relief to bullion, the dollar index fell to a six-week low against its rivals, making gold less expensive for holders of other currencies.
According to Reuters technical analyst Wang Tao, gold could slip more in the range of 1,744- $ 1,758 per ounce, and its failure to break resistance could lead to a resistance of $ 1,785.
Silver fell 0.2% to $ 25.75 an ounce, palladium fell 0.9% to $ 2,786.78 and platinum slipped 0.3% to $ 1,202.32.