Published at 21/04/2021 at 17:51
Published at 21/04/2021 at 15:25
Published at 21/04/2021 at 12:33
Published at 21/04/2021 at 09:19
Published at 21/04/2021 at 06:35
Published at 21/04/2021 at 02:24
Published at 20/04/2021 at 20:33
Published at 20/04/2021 at 18:35
Published at 20/04/2021 at 17:56
Published at 20/04/2021 at 13:28
Published at 21/04/2021 at 16:21
Published at 21/04/2021 at 14:06
Published at 21/04/2021 at 14:04
Published at 21/04/2021 at 08:11
Published at 21/04/2021 at 03:26
Published at 21/04/2021 at 02:22
Published at 20/04/2021 at 21:11
Published at 20/04/2021 at 19:18
Published at 20/04/2021 at 13:37
Published at 20/04/2021 at 08:28
PRECIOUS-Gold slides to 9-month low as Powell's remarks make yields rally
Published at 05/03/2021 at 07:28
* U.S. 10-year yields hold above 1.5%
* Gold down 2% for the week so far
* Silver on track for worst week since late-November
By Sumita Layek
March 5 (Reuters) - Gold declined to a near nine-month low on Friday and was set for a third straight weekly decline, as the dollar and bond yields rose after Federal Reserve Chair Jerome Powell's remarks that the rise in yields were not "disorderly."
Spot gold was steady at $1,697.60 per ounce by 0712 GMT, having earlier fallen to its lowest since June 8 at $1,686.40. For the week so far, it is down 2%.
U.S. gold futures fell 0.5% to $1,692.90.
Powell on Thursday repeated his pledge to keep credit loose and said although the rise in yields was "notable", he did not believe the Fed will have to intervene to bring them down.
"Clearly, Powell wasn't dovish enough for markets overnight and, in some ways, greenlighted higher U.S. yields by saying he was comfortable with that," said OANDA senior market analyst Jeffrey Halley.
"All signs point to the bond tantrum continuing," Halley said, adding it seems inevitable that gold will break below the current levels and lodge deeper losses to the $1,600 region.
The U.S. 10-year yields held above 1.5%, while the dollar surged to three-month highs. Higher yields increase the opportunity cost of holding non-interest paying bullion.
"Powell's remarks just reinforce the sense that the Fed is slowly moving in the direction of acclimating markets toward there not being substantial further policy support," said DailyFX currency strategist Ilya Spivak.
Markets are also starting to take into account that with the ramp up in vaccines, another U.S. fiscal package and increasing inflation expectations, the Fed might consider tightening sooner than they expected, Spivak said.
Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust fell to lowest since May on Thursday.
Silver fell 0.2% to $25.25 an ounce, and was down 5% for the week, its worst since late-November. Palladium gained 0.6% to $2,352.33 and platinum shed 0.5% to $1,119.98.
(Reporting by Sumita Layek in Bengaluru; editing by Uttaresh.V)
((Sumita.Layek@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 8061822693; Reuters Messaging: Sumita.Layek.email@example.com))