Gold prices eased slightly following a 10 -year surge in U.S. treasury yields and the U.S. dollar dampening the attractiveness of the precious metal.
In the Asian session, the yellow metal traded hovering around $ 1,813 per ounce, while gold futures were little changed at $ 1,812 per ounce.
US 10 -year bond yields rose to a two -year high by touching the 1.88% level in today’s trading session supported by market optimism for an interest rate hike by the Federal Reserve (Fed).
While the US dollar also traded stronger causing gold to trade more expensively for holders of other major currencies.
For now, there are widespread expectations for a more aggressive tightening from the US central bank with an interest rate hike by 50 basis points in March.
Even so, the movement exhibited in gold prices remained stable despite bond yields registering a significant increase to the highest level since January 2020.
Investors ’focus is now shifting to UK inflation data to be released in today’s European session, where it is expected to continue to show improvement in December.
