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Gold Up, but Stronger Dollar, Rising U.S. Yields Keep Gains Small By


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By Gina Lee – Gold was up on Tuesday morning in Asia. However, a strengthening dollar and rising U.S. Treasury yields capped the yellow metal’s gains, and investors await further clues from U.S. Federal Reserve officials on when it will begin asset tapering and hike interest rates.

The price of $1,752.45 rose 0.03% by 11:02 ET (03:02 GMT). Also, on Tuesday the, which usually moves in an opposite way to gold, increased.

Shortly, the benchmark U.S. 10-year yield soared to 1.5%. This was a new record since June 2021 when it reached 1.5% during the last session. Two-year yield rose to the highest point since March 2020.

U.S. Treasury Secret Janet Yellen and Fed Chairman Jerome Powell are expected to join them at a Senate Banking Committee hearing later today. A House Financial Services Committee hearing will follow two days later. Powell made prepared remarks saying that the Fed would take steps to stop unchecked inflation.

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He will also be joined by the Bank of England’s Andrew Bailey, the Bank of Japan’s Haruhiko Kuroda, and the European Central Bank (ECB)’s Christine Lagarde at an ECB Forum on Central Banking panel on Wednesday. Lagarde is scheduled to speak later that day at the forum.

In Asia Pacific, the on Monday vowed to protect consumers exposed to the housing market and injected more cash into the banking system. The Shenzhen government also began investigating China Evergrande Group’s wealth management unit as the developer’s debt woes continue.

Meanwhile, Narodowy Bank Polski (National Bank of Poland) has more than 230 tons of gold and plans to expand its reserves, its president Adam Glapiński said on Monday.

The trend was also downward for other precious metals on Tuesday. Platinum fell 0.5%, silver dropped 0.8% and palladium fell 0.6%.

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