Gold prices failed to record gains by falling lower despite US dollar trading displaying a decline at the beginning of the European session.
This constraint was due to the increase in the 10 -year US treasury yield which rose back to 1.70%.
This caused gold trading to decline as low as 1,725 per ounce when the European session opened.
U.S. treasury yields rose after 3- and 10 -year government bond auctions that took place in the previous New York session.
A similar increase is also expected to be seen as the 30 -year bond auction will also be held today.
While the US dollar depreciated slightly, it remained stable around 92.23 against most major currencies.
Meanwhile, the main focus of the market is now on the publication of US inflation data which is expected to record a larger increase in March driven by the launch of vaccines and stimulus packages.
It is not only the focus of the market, but will also be noticed by the Federal Reserve (Fed) which has previously opened up opportunities for inflation to rise higher as the economy recovers from the Covid-19 outbreak.
