Gold prices stabilized after plunging lower on Friday due to a surge in US treasury yields that had prompted the strengthening of the greenback dollar.
At the end of last week, gold precious metals experienced a sharp decline of $ 1,717 an ounce, the lowest in 8 months. This makes it the worst monthly fall since November 2016.
However, in today's Asian session, gold trading again showed a modest recovery around the $ 1,749 ounce price level. Gold futures traded positively at $ 1,747 an ounce (11.30am Malaysian time).
However, the price of gold is still under risk due to the long-term US treasury yields which continue to show an increase and the central bank shows no signs of curbing its rise.
Expectations of a strong economic recovery driven by vaccine launches and stimulus measures that sparked concerns over inflation, have pushed the U.S. treasury yields to a one-year high.
On Saturday, the U.S. House of Representatives approved a $ 1.9 trillion coronavirus relief package with a very strong vote.
Despite the lack of support from Republicans, the bill will be taken directly to the Senate where it is expected to be passed before March 14, before the stimulus is completed.
