Article content Markets added to gains on Wednesday and yields climbed due partly to positive corporate earnings, as investors largely overlooked apprehension about the Delta coronavirus variant and inflation. The yield on 10-year Treasury notes continued their bounce from five-month lows following a weak 20-year bond auction. Higher bond yields increase the opportunity cost of holding non-interest bearing gold. The European Central Bank is all but certain to promise an even longer period of stimulus on Thursday to make good on its commitment to boost inflation. U.S. President Joe Biden said the current uptick in consumer prices will be short lived as the U.S. economy emerges from the global COVID-19 crisis, adding that his economic plan will reduce inflation over the long term.
Gold hovers near 1-week low as risk appetite improves; focus on ECB meet
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Gold hovers near 1-week low as risk appetite returns; ECB meet in focus
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PRECIOUS-Gold slips as dollar firms, Treasury yields rebound Reuters 6 hrs ago
July 21 (Reuters) - Gold prices slipped on Wednesday, as a buoyant dollar and a rebound in U.S. Treasury yields stemmed inflows into the safe-haven bullion spurred by fears the Delta coronavirus variant may stall a global recovery.
FUNDAMENTALS U.S. gold futures eased 0.1% at $1,808.90 per ounce. Yields on 10-year Treasuries bounced off five-month lows, increasing the opportunity cost of holding non-interest bearing gold. The dollar, also considered a safe bet during geopolitical uncertainties, held near a 3-1/2-month peak against its rivals, potentially trimming appetite for gold by making the metal more expensive for holders of other currencies.