Gold succumbs to higher yields while palladium continues breaking records

GOLD is set to close the week on a softer note, after prices succumbed to rising global bond yields despite the US Federal Reserve saying it was too early to consider rolling back emergency support for the US economy and President Biden laying plans for a US$1.8 trillion stimulus package.

Palladium prices notched higher nearer to the US$3,000-an-ounce handle, making new highs on auto catalyst demand.

Gold prices this week had been consolidating in a narrow range ahead of the Federal Open Market Committee meeting on Wednesday. Although the central bank kept a dovish stance as expected, the Fed's statement released could not propel gold prices much higher than US$1,790 an ounce.