Gold Touches 1-Week High As Dollar Weakens, U.S. Treasury Yields Ease

Gold Touches 1-Week High As Dollar Weakens, U.S. Treasury Yields Ease

23 Feb 2021 10:46 AM
 

Gold rose a one-week peak today, boosted by a weaker dollar and a fall in U.S. Treasury yields, while worries of increasing inflation further boosted demand for gold.

Spot gold climbed 0.4% to $1,815.52 per ounce by 0834 IST, after touching its highest since Feb. 16 at $1,815.63 earlier in the session. U.S. gold futures advanced 0.3% to $1,813.50.

The dollar hit an over one-month low, making gold inexpensive for other currency holders, as investors await U.S. Federal Reserve Chairman Jerome Powell's testimony to Congress later in the day.

Benchmark U.S. Treasury yields fell from a near one-year peak yesterday, reducing the opportunity cost of holding non-yielding gold.

Gold, often viewed as an inflationary hedge, climbed 1.5% in the previous session, as fears of rising inflation dragged global equities lower.

Silver climbed 0.3% to $28.23 an ounce, having earlier hit a three-week peak at $28.31. Platinum rose 0.1% to $1,273.10, while palladium advanced 0.5% to $2,406.41.