Gold steadied near the lowest level in four weeks as bond yields rebounded ahead of a key Federal Reserve meeting.
On Monday, the yield on 10-year Treasuries rose to 1.49% after hitting three-month lows on Thursday. This damped the appeal of the non-interest-bearing precious metal. Investors will be looking to the Fed gathering, which starts Tuesday, for signals on a timeline for paring down emergency stimulus.
Bullion’s retreat from the highest level since January earlier this month came as investors weigh inflation pressures and the Fed’s monetary policy path. Expectations are that the central bank won’t signal scaling back bond purchases until August or September, even if it delivers projections for interest-rate liftoff in 2023, according to economists surveyed by Bloomberg.
Spot gold was little changed at $1,866.55 an ounce at 7:32 a.m. in Singapore. Prices slumped to $1,844.92 on Monday, the lowest intraday level since May 17. Silver, platinum and palladium all steadied. The Bloomberg Dollar Spot Index was flat.