Gold prices eased at the start of the Asian session as rising expectations of a faster global recovery have lifted demand for riskier assets, with the decline in the US dollar and bond yields limiting losses of the precious metal.
Nevertheless, although there are expectations of a stronger recovery from the recession caused by Covid-19, the data also shows that inflation is on the rise and this has given more support to gold trading as a hedge to inflation.
Spot gold slipped 0.2% to around $ 1,876 an ounce in the Asian session, still failing to break the $ 1,900 price target after repeated attempts.
Despite the decline, the yellow metal remained trading stronger around a four -month high following US dollar trading and weak bond yields.
10 -year U.S. bond yields continued to decline to a 2 -week low of 1.60% after Fed officials said their support for maintaining monetary policy despite rising inflation.
This in turn caused the US dollar to continue to trade weak against its major rivals by trading at a low of almost 4 months.
