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Gulf Today Report 

Gold prices slid on Wednesday as US Treasury yields surge and dollar firms.

Spot gold eased 0.1% to $1,793.37 per ounce by 06:54 GMT while US gold futures fell 0.6% to $1,788.40.

Margaret Yang, DailyFX strategist said, "investors are eyeing rising yields, dollar and are hesitant to do any bargain hunting on the precious metals at the moment as yields may go further up in view of reflation hopes and impending stimulus package."

Benchmark US Treasury yields recorded large gains, their highest since February 2020. The dollar index jumped, rebounding from a three-week low. 

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US President is confident that the relief bill would be pass in the coming weeks.

Gold serves as a shield against inflation, higher inflation is likely to boost gold but also lifts Treasury yields, which in turn increases the opportunity cost of holding bullion.

However, "deep corrections of (gold) prices due to short-term fluctuations are viewed as buying opportunities," Avtar Sandu, senior commodities manager at Phillip Futures, said in a note.

Investors are focusing on the outcome of the Federal Reserve’s end-January monetary policy meeting due later today.