Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Gold Down, as Rising Yields Strips Some of Yellow Metal’s Lustre

Published 03/03/2021, 11:35 PM
Updated 03/03/2021, 11:39 PM
© Reuters.

© Reuters.

XAU/USD
1.01%
DX
-0.74%
GC
1.42%

By Gina Lee

Investing.com – Gold was down on Thursday morning in Asia, with rising U.S. Treasury yields turing investors away from the precious metal even as it pushes upwards from the near nine-month low hit during the previous session.

Gold futures were down 0.23% at $1,711.90 by 11:37 PM ET (4:37 AM GMT). The dollar, which usually moves inversely to gold, edged up on Thursday.

Benchmark U.S. Treasury yields gained around 1.5%, increasing the opportunity cost of holding bullion.

The U.S. economic recovery continued at a modest pace over the first weeks of 2021, the Federal Reserve said in its Beige Book released on Wednesday.

Chicago Fed President Charles Evans also said on Wednesday that he viewed the recent rapid rise in bond yields as mostly reflecting improvements in the economy. Investors now await a speech by Fed Chairman Jerome Powell later in the day at the Wall Street Journal Jobs Summit, for guidance on future Fed monetary policy.

On the stimulus side, debate on President Joe Biden’s $1.9 trillion package proposed in the Senate has been slightly. The chamber is expected to begin discussions later in the day.

Meanwhile, Perth Mint said on Wednesday that gold sales jumped to their highest in at least nine years in February, and silver sales also jumped.

In other precious metals, silver rose 0.4%, while palladium eased 0.3% and platinum dropped 0.5%.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.