Gold recovers from nine-month low, but higher yields weigh

[BENGALURU] Gold prices edged up on Thursday to recover from a near nine-month low hit in the previous session, although higher US Treasury yields continued to weigh on the non-yielding bullion's appeal.

Spot gold was up 0.2 per cent at US$1,714.27 per ounce by 0051 GMT, having dropped to their lowest since June 9 at US$1,701.40 on Wednesday. US gold futures dipped 0.2 per cent to US$1,712.80.

Benchmark US Treasury yields held near 1.5 per cent, increasing the opportunity cost of holding bullion, which pays no returns.

The US economic recovery continued at a modest pace over the first weeks of this year, the Federal Reserve reported on Wednesday.

Chicago Fed President Charles Evans on Wednesday said he sees the recent rapid rise in bond yields as mostly reflecting improvements in the economy.

US private payrolls increased less than expected in February, suggesting the labour market was continuing to struggle.

The US Senate delayed the start of debate on a US$1.9 trillion Covid-19 relief bill until at least Thursday.

Investors now await Fed Chair Jerome Powell's speech before a virtual Wall Street Journal Jobs Summit at 1705 GMT, for clues on the outlook of the central bank's monetary policy.

Perth Mint's gold sales surged in February to their highest in at least nine years, while silver sales also jumped, the refiner said in a blog post on Wednesday.

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust fell 0.4 per cent to 1,082.38 tonnes on Wednesday.

Silver rose 0.4 per cent to US$26.18 an ounce, while palladium eased 0.3 per cent at US$2,347.52. Platinum shed 0.5 per cent to US$1,161.50.

REUTERS