Gold prices returned to decline on Wednesday after recording their biggest jump in two months in Tuesday's trading session amid rising 10-year U.S. treasury yields and thus pushing the U.S. dollar higher.
Ahead of the opening of the European session, spot gold eased slightly to around $ 1,710 per ounce, while gold futures were down at $ 1,707 per ounce (2.15pm Malaysian time).
Earlier, a decline in 10 -year U.S. bond yields had prompted the precious metal gold to display gains of up to 2% and brought it back to trade above $ 1,700.
The decline has also driven the greenback dollar to trade lower against most other major currencies, and driven an increase in global stock markets.
However, the decline did not last long, with 10 -year US bond yields again recording gains in today's Asian session and driving a strengthening for the US dollar.
Price movements may change ahead of the release of US inflation data tonight which will certainly be the main focus of the market, but investors should also be cautious as rising inflation could also affect rising US bond yields.
Additionally, the U.S. House of Representatives will consider a stimulus package bill on Wednesday which it is expected to continue to pass and brought directly to President Joe Biden to sign it into law later this week.
