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Gold hits near 6-week low on firmer dollar, higher Treasury yields

Monday,   11-Jan-2021   09:24 AM (IST)

Gold prices touched a near six-week low on Monday, extending losses from the previous session, as a stronger dollar and higher U.S. Treasury yields pressured the non-yielding bullion. Spot gold fell as much as 1.7% to $1,816.53 per ounce, its lowest since Dec. 2, and was down 0.7% at $1,835.96 by 0259 GMT. Prices fell as much as 4.4% on Friday. U.S. gold futures GCv1 were flat at $1,835.60. The U.S. 10-year Treasury yield held firm above 1%, helping the dollar scale a near three-week peak against rival currencies, making bullion expensive. Higher bond yields increase the opportunity cost of holding gold. Investors also took note of Federal Reserve Vice Chair Richard Clarida's comments on Friday that the U.S. economy was headed for an "impressive" year, helped by coronavirus vaccines and potential for larger government spending. President-elect Joe Biden on Friday hinted at more direct pandemic relief to families, including $2,000 stimulus checks after data showed the U.S. economy shed jobs for the first time in eight months in December. Silver fell 2.6% to $24.71 an ounce, after dropping as much as 4.2% earlier in the session. Platinum fell 2.7% to $1,036.14, while palladium shed 0.6% to $2,355.16.