Gold Flips Lower As $1700 Mark Gives Up

Published on Mar 05, 2021 11:57

COMEX Gold futures slumped under $1700 per ounce mark amid a sustained rise in US 10 year treasury yields which surged above 1.50%. The US Federal Reserve Chairman Jerome Powell stated that the reopening of the US economy could lead to higher inflation but reiterated the central bank will remain patient with regard to monetary policy. The Fed chief said he expects the increase in inflation to be transitory. Powell did not comment on any changes in Fed`s asset purchases in response to the recent surge in bond yields. With this slide, Gold approached fresh eight month low, wiping out nearly $400 from its life highs. The metal lost more than 1% yesterday and currently trades down 0.54% at $1691 per ounce.