Gold steady as traders weigh dollar retreat, rising bond yields
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Gold steady as traders weigh dollar retreat, rising bond yields

Gold steady as traders weigh dollar retreat, rising bond yields

Traders are awaiting more clarity on central bank action to tackle searing inflation

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Gold slumps to lowest since March 2021, dollar strength likely to continue

Gold is holding near an 11-month low as investors weigh the US dollar’s retreat against rising Treasury yields amid improving sentiment in markets.

Bullion has been stuck in a narrow trading range, closing little changed since Friday, as a gauge of the greenback fell for three straight days in a sign of waning haven demand. A decline in Treasuries took the 10-year yield back above 3 per cent.

Traders are awaiting more clarity on central bank action to tackle searing inflation.

The European Central Bank may consider raising interest rates on Thursday by double the quarter-point it outlined just last month, according to people familiar with the situation. The Federal Reserve’s meeting on July 26-27 will also be closely watched.

Spot gold slipped 0.1 per cent to $1,709.95 an ounce at 7:55 a.m. in Singapore. Prices dipped below $1,700 last week for the first time since August.

The Bloomberg Dollar Spot Index was little changed after dropping 0.5 per cent in the previous session. Silver, palladium and platinum were steady.

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