(adds iteration, comment and updates prices)
*Bullion set for quarterly decline
*US dollar nears one-year high
Sep 30 (Businesshala) – Gold held steady on Thursday after two days of losses, helped by a modest fall in the dollar, but gains were held back on hopes that the US Federal Reserve may soon begin to ease its monetary support. will do it.
Spot gold was up 0.2% to $1,729.26 an ounce as of 0920 GMT. US gold futures were up 0.5% at $1,730.70.
Exinity Chief Market Analyst Han Tan said gold is being offered some relief from the dollar.
But increased prospects for the Fed’s tapering, now widely expected to begin in November, and continuing Treasury yields are expected to put more pressure on the zero-yield precious metal, Tan said.
The dollar index rallied on Thursday, but hopes the Fed will begin to ease its stimulus this year, keeping the US currency near its highest level in a year, reducing gold’s appeal to holders of other currencies and Put it on course for the quarter at 2.2%. Dip.
The benchmark US 10-year Treasury yield also held above 1.5%, a level not seen since late June.
Lower central bank incentives and interest rate increases lead to higher government bond yields, increasing the opportunity cost of holding non-yielding gold.
While factors including the US debt limit deadlock, rising global inflation and the Evergrande crisis should generally support gold, bullion remains under pressure from a stronger dollar – an alternative “safe-haven” – and rising yields, says Ricardo Evangelista, senior analyst ActiveTrades said in a note.
Silver rose 0.5% to $21.62 an ounce.
Platinum rose 0.4% to $954.31, while palladium climbed 1.8% to $1,891.02. (Reporting by Arundhati Sarkar in Bengaluru. Editing by Jane Merriman)