Gold eases off seven-week high as US bond yields rise

Gold prices edged lower on Tuesday, moving away from a seven-week high hit in the last session, as a rebound in US Treasury yields overshadowed support from a sagging dollar.

Spot gold was down 0.1% to $1,768.06 per ounce by 0053 GMT, after hitting its highest since Feb. 25 at $1,789.77 on Monday.

US gold futures were steady at $1,770.70 per ounce. Benchmark US 10-year Treasury yield rose above 1.6% after hitting a five-week low last week, increasing the opportunity cost of holding non-yielding bullion.

Offering some respite to bullion, the dollar index fell to a more than six-week low against its rivals, making gold less expensive for holders of other currencies.

US President Joe Biden met on Monday with a bipartisan group of lawmakers who have all served as governors or mayors, as the White House seeks a deal on his more than $2 trillion jobs and infrastructure proposal.

Some investors view gold as a hedge against higher inflation that could follow stimulus measures, but higher Treasury yields dull some of the appeal of the non-yielding commodity.

More than 141.67 million people have been reported to be infected by the novel coronavirus globally and 3,163,124​ have died, according to a Reuters tally.

Meanwhile, SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.2% to 1,021.70 tonnes on Monday from 1,019.66 tonnes on Friday.