KONTAN.CO.ID - JAKARTA. Gold prices eased off a more than seven-week peak on Monday as U.S. Treasury yields ticked higher, weighing on non-yielding bullion's appeal and countering support from a weaker dollar. Spot gold dipped 0.2% to $1,773.30 per ounce by 10:43 a.m. EDT (1443 GMT), having earlier touched its highest since Feb. 25 at $1,789.77. U.S. gold futures fell 0.4% to $1,772.40 per ounce. Looking ahead, "we're still probably going to see gradual rise in U.S. interest rates along with gradual steepening of the yield curve and that should take some steam out of gold," said Daniel Ghali, TD Securities commodity strategist.
The benchmark 10-year yield rose above 1.6% after hitting a multiweek low last week. Bullion has dropped 6% so far this year, mostly pressured by surging U.S. yields. Read Also: India to fund capacity boost at Serum Institute as vaccines run short But capping gold's declines was a weaker dollar , which earlier fell to a more than six-week low against rivals. Chinese and Indian demand has started to rise again along with central bank purchases, which are likely to offset institutional outflows from gold, keeping gold prices range-bound in the near term, Ghali added.
