NEW DELHI (dpa-AFX) - Gold prices were subdued on Thursday to hover near a nine-month low as a jump in U.S. bond yields threatened the precious metal's appeal as an inflation hedge.
Spot gold was down 0.1 percent at $1,710.09 per ounce, after having dropped to its lowest since June 9 at $1,701.40 on Wednesday. U.S. gold futures were down half a percent at $1,707.10.
The U.S. dollar crept up to levels above ¥107 yen in Tokyo trading and Treasury yields stabilized as investors awaited a speech from Federal Reserve Chair Jerome Powell later today for any hints about the recent jump in bond yields.
Powell is expected to reaffirm his commitment to an ultra-easy monetary policy while stressing that the Fed won't rates to head off inflation.
Some money managers are betting that additional fiscal stimulus in the U.S. will boost inflation and cause the Fed to raise interest rates sooner than they had anticipated.
The U.S. Senate delayed a debate on a $1.9 trillion Covid-19 relief bill until at least Thursday, with passage in the chamber likely pushed off until the weekend.
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