Gold dips as Treasury yields advance on U.S. rate-hike prospects

Shafaq News / Gold prices dipped on Wednesday towards the previous session's one-week low as the prospect of aggressive rate hikes by the U.S. Federal Reserve sent benchmark Treasury yields to two-year highs, reducing the appeal of non-yielding bullion.

Spot gold was down 0.1% at $1,812.27 per ounce, as of 0513 GMT, after falling to a one-week low of $1,805 an ounce on Tuesday. U.S. gold futures dipped 0.1% to $1,811.10.

Gold is considered an inflationary hedge, but higher interest rates tend to weigh on the precious metal.

Benchmark U.S. Treasury yields jumped to two-year highs as traders await the Fed meeting on Jan. 25-26, expecting a more aggressive tone in tackling unabated inflation, which is the highest in nearly 40 years.

Spot silver fell 0.3% to $23.38 an ounce, platinum slipped 0.9% to $972.11, and palladium was down 0.4% at $1,890.18.

Source: Reuters