Gold prices dip as uptick in Treasury yields, dollar weighs

GOLD prices dipped on Thursday (Apr 21), tracking a rebound in US Treasury yields and the dollar, which continued to weigh on demand for safe-haven bullion.

Spot gold was down 0.2 per cent at US$1,953.21 per ounce, as of 12.39 am GMT. US gold futures were nearly flat at US$1,956.20.

US Treasury yields firmed after they fell from 3-year highs on Wednesday as dip buyers emerged and the US Treasury Department saw strong demand for a sale of 20-year bonds.

Yields have marched higher on expectations that the US Federal Reserve will aggressively hike interest rates as inflation accelerates at its fastest pace in 40 years.

Gold is highly sensitive to rising US interest rates and higher yields, which increase the opportunity cost of holding non-yielding bullion.

The dollar also strengthened after easing in the previous session, making the greenback-priced gold less attractive for other currency holders.

In the previous session, gold prices recovered after a falling to a near 2-week low as worries over the economic fallout from the Ukraine crisis buoyed demand for the safe-haven asset.

Russian forces said they will seize the Mariupol steel plant that is the last main stronghold of resistance in the besieged city on Thursday after Ukraine proposed talks on evacuating troops and civilians there.

Spot silver dipped 0.4 per cent to US$25.08 per ounce, platinum eased 0.1 per cent to US$986.42, and palladium dropped 0.3 per cent to US$2,444.43. REUTERS