Gold dips as yields rise after hawkish Fed Reserve minutes

Gold prices slipped on Thursday erasing earlier gains, as U.S. bond yields jumped after minutes from the last Federal Reserve meeting showed that the U.S. central bank may need to raise interest rates sooner than expected to curb inflation.

Spot gold was last down 0.2% at $1,810.56 per ounce by 15:21 ET (2021 GMT). U.S. gold futures settled 0.6% higher at $1,825.10.

In the wake of Fed minutes, the benchmark 10-year U.S. Treasury yields rose to their highest level since April 2021, while the dollar (.DXY) pared losses.

Some investors view gold as a hedge against higher inflation, but bullion is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion.

Elsewhere, spot silver fell 1.1% to $22.78 an ounce, platinum was up 0.9% at $980.53, and palladium fell 0.6% to $1,859.30.