Picture used for illustrative purpose. File

Gulf Today Report 

Gold prices jumped on Wednesday following a one-week decline in US Treasury yields, with bullion shrugging off strength in the dollar after Fed Chair Jerome Powell’s reassurance.

Spot gold was up 0.3% at $1,732.75 per ounce by 05:18 GMT while US gold futures climbed 0.4% to $1,732.20 per ounce.

Jeffrey Halley, OANDA senior market analyst said "gold looks to have found some buyers in early Asia, but it is just investors buying the dip ... If yields keep falling, that should be supportive for gold." 

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Treasury yields declined, it lowest since March 16. The dollar on the other hand recorded gains after Powell said inflation is likely to rise over the year but it would be "neither particularly large nor persistent."

According to OANDA’s Halley, "gold has support nearby at $1,720, and if the US dollar strengthens in Asia and Europe, it could test that level prompting some stop-loss selling."