Gold prices inched down after hitting a more than one-week peak on Thursday, as elevated US Treasury yields continued to remain a headwind for the precious metal.

FUNDAMENTALS

• Spot gold was down 0.1% to $1,725.17 per ounce by 0043 GMT, after hitting its highest since March 3 at $1,727.65 earlier in the session. US gold futures rose 0.1% to $1,724.20.

• Benchmark US Treasury yields edged higher, increasing the opportunity cost of holding the non-interest yielding bullion.

  • US consumer prices increased solidly in February, with households paying more for gasoline, but underlying inflation remained tepid amid weak demand for services like airline travel and hotel accommodation.

  • The House of Representatives gave final approval on Wednesday to one of the largest economic stimulus measures in US history, a sweeping $1.9 trillion COVID-19 relief bill that gives President Joe Biden his first major victory in office.

• The European Central Bank is likely to signal faster money printing on Thursday to keep a lid on borrowing costs but it will stop short of adding firepower to its already aggressive pandemic-fighting package.

  • Rising Treasury yields, a dollar rebound and commodity prices at multi-year highs may be starting to feed into a tightening of global financial conditions, testing the resolve of central bankers to reverse the moves by providing additional support.

  • Silver eased 0.2% to $26.10 an ounce. Palladium was down 0.3% to $2,299.85. Platinumfell 0.8% to $1,192.78.