Gold was down on Tuesday morning in Asia as U.S. Treasury yields firmed. Increasing hopes of a quick economic recovery from COVID-19 also turned investors away from the safe-haven yellow metal.
Gold futures inched down 0.08% at $1,731.40 by 12:10 AM ET (4:10 AM GMT).
Treasury yields stayed marginally higher after an auction of three- and 10-year notes on Tuesday attracted decent demand, with 30-year notes to be auctioned later in the day.
Meanwhile, data and comments from the U.S. Federal Reserve served to increase recovery hopes higher.
A survey published on Monday by the Federal Reserve Bank of New York said that U.S. consumers raised their inflation expectations again in March following gradual increases in recent months, and they are more positive about the job market.
Meanwhile, Boston Federal Reserve Bank President Eric Rosengren said in an interview on Monday that the U.S. economy could see a substantial turnaround in 2021 thanks to accommodative monetary and fiscal policy. However, he added that the job market still has a lot of space for growth.
Fed Chairman Jerome Powell will also speak at an Economic Club of Washington event on Wednesday, and the central bank will release its Beige Book on the same day.
In other precious metals, silver fell 0.6%, palladium inched down 0.1% and platinum slipped 0.6%.