Gold prices returned to move higher in the European session, following the weak movement exhibited by US treasury yields.
At the time of writing, spot gold is trading up 0.3% around $ 1,792 per ounce, with the movement now heading towards the $ 1,800 target level.
The 10 -year US treasury yield continued to move weak by hovering around the same level at 1.57, thus limiting the movement of the US dollar from rising higher.
Earlier, the yellow metal declined sharply following a statement by US Treasury Secretary Janet Yellen which sparked expectations of a faster -than -expected interest rate hike.
On Tuesday, Yellen warned that interest rates needed to be raised to fight inflation amid a fast -paced global economic recovery.
However, the market calmed down again after Federal Reserve (Fed) officials rejected Yellen's statement, saying it was too early to discuss tapering in current policy.
In fact, they also do not see the current rise in inflation as problematic, but it is seen as stable. This indicates the Fed will continue to stick to current policies to support recovery.
