The yellow-gold metal struggled to gain traction with prices continuing to hover around the $ 1,820 per ounce at the start of trading earlier this week.
As the market headed towards the opening of the European session, gold precious metals traded lower at $ 1,819 an ounce (2.30pm Malaysian time).
In fact, the long-term jump in U.S. treasury bond yields has been the highest since March on Friday, while inflation expectations are rising to the highest in six years.
Higher inflation not only increased the price of gold, but in this context it gave impetus to the increase in bond yields.
However, the rise in US bond yields failed to support the US dollar to rise, but instead fell lower against most major currencies.
This is driven by the growing prospects for the widespread implementation of vaccination measures around the world and raising market confidence in the global economic recovery, thus reducing the demand for safe-haven.
Vaccination efforts are underway, with Japan and Australia now waiting for the start of their vaccination campaigns. Meanwhile, the UK has managed to meet the target to vaccinate its 15 million people from the top ranks.
