Gold rebounds as dollar retreat offsets higher bond yields

Gold prices rose on Wednesday as a pullback in the dollar and Sino-U.S. tensions helped counter pressure from a rise in U.S. Treasury yields after hawkish comments from Federal Reserve officials on interest rate hikes, Reuters reported.

Spot gold was up 0.4% at $1,766.59 per ounce, as of 0309 GMT. On Tuesday, bullion rose to a near one-month high of $1,787.79 before closing down 0.6% on the day.

U.S. gold futures slipped 0.5% to $1,780.80 per ounce.

“Gold tested resistance around $1,785-$1,790 level overnight and got rejected… Also, the markets have become a little bit more sceptical about reversal of tightening from the Fed,” said Ilya Spivak, a currency strategist at DailyFX.

Spot silver fell 0.2% to $19.91 per ounce, platinum gained 0.2% at $895.52, and palladium rose 1.2% to $2,087.66.