Gold prices claw back as US Treasury yields retreat

Gold prices claw back as US Treasury yields retreat

Gold prices on Thursday inch higher following a decline in US Treasury yields, lifting the non-yielding bullion's appeal. Spot gold was up 0. 4% at $1, 782. 64 per ounce by 03:36 GMT while US gold futures gained 0. 6% to $1, 783. 10. Jeffrey Halley, OANDA senior market analyst said, "the US long-dated yields backing off this week's highs is offering some support. It also appears dip buyers from China returned from Lunar New Year holidays." Benchmark 10-year Treasury yields declined from a near one-year peak hit on Wednesday. Lower yields affect the cost of holding bullion, which pays no interest. "In the bigger picture ... gold is merely pausing for breath. The $1, 760 an ounce remains a critical level, a break below that suggests deeper losses to the $1, 600/$1, 650 region." Gold is viewed as a hedge against inflation, likely from widespread stimulus. Silver eased 0. 1% to $27. 32 an ounce. Platinum gained 2. 2% to $1, 280. 54 and palladium rose 0. 7% to $2, 387. 93. Spot gold hit its highest since early October 2012 at $1, 788. 96 in early trade, and by 0958 GMT was at $1, 787. 31 per ounce,