By Gina Lee
Investing.com – Gold was up on Thursday morning in Asia, steadying as U.S. Treasury yields eased. A strengthening dollar capped the yellow metal’s gains, however.
Gold futures inched up 0.08% at $1,734.60 by 1 AM ET (5 AM GMT).
The dollar, which usually moves inversely to gold, also inched up on Thursday. The greenback hit a fresh four-month high against the euro on Thursday, emerging as the safe-haven asset of choice as Europe struggles with its third wave of COVID-19 cases and a delayed vaccine rollout.
In the U.S., average demand for Wednesday’s auction of five-year notes saw U.S. Treasury yields drop and stabilize after benchmark yields reached one-year highs during the previous week. Seven-year notes are due to go under the hammer later in the day.
On the central bank front, the timeline for when the U.S. Federal Reserve will start to raise rates is dependent on what is happening with the economy, New York Fed President John Williams (NYSE:WMB) said on Wednesday. Chicago Fed President Charles Evans also added that the Fed will not reduce monetary policy accommodation until it sees actual improvements.
Meanwhile, Treasury Secretary Janet Yellen on Wednesday said that U.S. banks look healthy enough to be allowed to pay dividends and repurchase stock during her second day of Congressional testimony alongside Fed Chairman Jerome Powell.
Yellen seemed to reverse course after raising the possibility of tax hikes to fund infrastructure and other programs on Tuesday.
In other precious metals, palladium edged down 0.2%, while silver inched up 0.1% and platinum edged up 0.2%.