Washington
Gold steadied on Friday as worries over an economic slump caused by the Covid-19 pandemic countered pressure from a jump in US Treasury yields on Federal Reserve Chair Jerome Powell’s offer for more inflation tolerance.
Spot gold was up 0.1 per cent at $1,929.94 per ounce by 0117 GMT, after falling more than 1.2 per cent on Thursday. Gold has fallen more than 0.5 per cent so far this week.
US gold futures rose 0.2 per cent to $1,936.30. The precious metal is priced at Dh235 for 24K, 220.75 for 22K and Dh180.50 for 18K, per gram in Dubai.
The Fed’s new monetary policy strategy pledges to address “shortfalls” from the “broad-based and inclusive goal” of full employment and also promises to aim for 2 per cent inflation on average
Longer-term US Treasury yields climbed to their highest levels in months on Thursday. Higher bond yields increase the opportunity cost of holding non-interest bearing gold. — Reuters
