Gold prices rose earlier in the week as the implementation of the U.S. stimulus package posed risks to inflation, but the recorded price increases were limited to rising U.S. government bond yields.
In the Asian session, gold traded steady hovering at a one -week high of $ 1,730 an ounce.
Gold prices are seen still showing an uptrend, supported by the $ 1.9 trillion US stimulus package that was signed by President Joe Biden last week.
Gold tends to rise when more fiscal stimulus is implemented as a hedge to inflation.
However, due to the US treasury yield which also showed an increase, the trading movement of the yellow metal was quite limited.
The benchmark U.S. 10 -year bond yield continued to strengthen around 1.635%, after soaring to its latest one -year high of 1.645% on Friday.
The surge has pushed gold’s decline to the $ 1,700 per ounce price level, before it rebounded at the close of trading last week.
Volatility in US long -term bond yields is expected to continue to be the driver to movements in the market this week.
