By Gina Lee

Investing.com – Gold was down on Thursday morning in Asia, but an easing and U.S. bond yields retreating from a three-week high capped the yellow metal’s losses.

The dollar was down 0.9% at $1,868.60 (11:38 pm ET) (4:38 am GMT), after reaching a new record of over five months on Wednesday. While the US dollar was moving in the opposite direction of gold and fell on Thursday, it remained close to a 16 month high.

Benchmark posted a slight increase on Thursday, but it fell from the three-week peak reached during the previous session. Also, the 20-year bond auction failed.

Investors remain concerned that central banks will raise interest rates more quickly than they expected.

According to Wednesday’s announcement, the U.S. Federal Reserve won’t complete asset tapering until mid-2022. Evans stated that Evans will monitor inflation to see if it falls below the record levels he anticipates.

wind-down of its bond-buying program won’t be completed until the middle of next year even if the central bank checks whether high inflation eases.

A jump in U.K. Inflation in October led to expectations across the Atlantic that the Bank of England might raise interest rates in December.

The Consumer Price Index grew by a greater than expected 1.1% to 4.2%

Isabel Schnabel, board member of the European Central Bank, stated that they must have the ability to manage inflation in Europe elsewhere if the trend is more persistent than anticipated.

On Wednesday, SPDR Gold Trust (P) holdings rose 0.1% to 976.87 tonnes.

Silver rose 0.2% in other precious metals after the Silver Institute reported that worldwide silver demand would rise to 1.02 billion ounces by 2021. This is its first increase of more than one billion ounces since 2015. Palladium and platinum rose 0.3%.