Gold prices buoyed by lower U.S. bond yields

Shafaq News / Gold prices treaded water on Wednesday, with lower U.S. Treasury yields lending support, as bullion's struggle to break out of its range-bound trade continued.

Spot gold was up 0.1% at $1,821.57 per ounce by 0254 GMT. U.S. gold futures firmed 0.1% at $1,823.10.

Helping the appeal of non-yielding bullion, benchmark U.S. 10-year Treasury yields eased on Wednesday after three straight sessions of gains.

U.S. Federal Reserve policymakers promised further rapid interest-rate hikes to bring down high inflation on Tuesday, but pushed back against growing fears among investors and economists that sharply higher borrowing costs will trigger a steep downturn.

Although gold is seen as an inflation hedge, higher short-term U.S. interest rates and bond yields raise the opportunity cost of holding bullion, which yields no interest.

(CNBC)