Spike in US Treasury yields inhibits gold's appeal

GOLD this week pared some of last Friday's losses when prices sold off sharply due to a spike in US 10-year Treasury Note Yields. Strong fund flows into the US Treasury market took the shine off gold and the US dollar - which rebounded from more than two-year lows the previous week, adding to gold's weakness.

Gold slumped more than 4 per cent on Friday, but regained composure after buying on dips at US$1,820 an ounce supported the gold market's rebound.

US President-elect Joe Biden in a much-awaited speech proposed a US$1.9 trillion stimulus package. Bullion edged higher on the proposed plan, but gains were limited by the spike in Treasury yields.