By Gina Lee
Investing.com – Gold was down on Tuesday morning in Asia, even with a retreat in U.S. Treasury yields and progress on a massive stimulus package in the U.S. cheered investor sentiment.
Gold futures were down 0.62% at $1,712.35 by 11:18 PM ET (4:18 AM GMT). The dollar, which normally moves inversely to the yellow metal, was up on Tuesday.
Benchmark U.S. Treasury yields retreated further from a one-year high hit during the previous week, with the U.S. Federal Reserve continuing to downplay inflation concerns.
Investors now turn to Fed Chairman Jerome Powell, who will speak at a Wall Street Journal event on Thursday where he is expected to discuss the economy. The Fed will also release its Beige Book on Wednesday.
Debate on a $1.9 trillion stimulus package will begin in the Senate later in the week, the chamber’s Majority Leader Chuck Schumer said on Monday.
Meanwhile, Wells Fargo (NYSE:WFC) said that it would expand its precious metals trading business, filling the gap left Bank of Nova Scotia (Scotiabank) withdrew from the market.
The biggest global lender to the physical precious metals industry for years, Scotiabank made the decision to downsize in 2018 and exit the sector in 2020.
Across the Atlantic, the European Central Bank reduced its net purchases of debt during the previous week, even as borrowing costs rose in the financial markets. The decision cast a shadow over the nascent recovery from COVID-19 in the euro zone economy, where the virus’ impact is still being felt.
In other precious metals, silver gained 0.5%, palladium climbed 0.4% and platinum rose 0.7%.