Gold prices claw back as US Treasury yields retreat

Gulf Today Report 

Gold prices on Thursday inch higher following a decline in US Treasury yields, lifting the non-yielding bullion’s appeal.

Spot gold was up 0.4% at $1,782.64 per ounce by 03:36 GMT while US gold futures gained 0.6% to $1,783.10.

Jeffrey Halley, OANDA senior market analyst said, "the US long-dated yields backing off this week's highs is offering some support. It also appears dip buyers from China returned from Lunar New Year holidays." 

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Benchmark 10-year Treasury yields declined from a near one-year peak hit on Wednesday. Lower yields affect the cost of holding bullion, which pays no interest.

"In the bigger picture ... gold is merely pausing for breath. The $1,760 an ounce remains a critical level, a break below that suggests deeper losses to the $1,600/$1,650 region."

Gold is viewed as a hedge against inflation, likely from widespread stimulus. Silver eased 0.1% to $27.32 an ounce. Platinum gained 2.2% to $1,280.54 and palladium rose 0.7% to $2,387.93.