UNITED STATES – Gold prices steadied on Thursday after falling in early trade on concern over rising US bond yields and global interest rates, but buyers turned up when the precious metal reached technical support at around $ 1,312 an ounce.
The dollar’s rally had a negative impact on gold during a recent wave of equity markets. The yellow metal was also pressured by comments from Federal Reserve officials that the stock market turmoil is unlikely to derail interest rate hikes this year.
Gold is negatively impacted by higher interest rates as it drives bond yields higher, reducing the attractiveness of a yellow metal that is not yielding.
From late December to early January, gold prices rose to a one-and-a-half year high of $ 1366.07 an ounce largely due to a weaker dollar.
Spot gold settled at $ 1318.12 an ounce late in the US session after falling earlier at $ 1306.81, its lowest level since January 2.
US gold futures for April delivery rose 0.3 percent to settle at $ 1,319 an ounce.
Among other precious metals, silver rose 0.4 percent to $ 16.43 an ounce after hitting its lowest level since Dec. 22 at $ 16.22.
Platinum fell 0.4 percent to $ 976.30 an ounce after hitting a one-month low of $ 965.
Palladium fell 1.9 percent to $ 965.90 an ounce after falling to its lowest level since October 31 at $ 964.22.
