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PRECIOUS METALS-Gold falls 2% to 3-week lows as US bond returns rise

Por shreyansi singh

Mar 30 (Reuters) – Gold prices fell nearly 2% on Tuesday as a stronger dollar, higher Treasury yields and hopes for a faster economic recovery in the United States dampened demand for the considered bullion. as a refuge.

* Spot gold fell 1.6% to $ 1,685.43 an ounce at 1644 GMT. Early in the session, the bullion lost about 2% to its lowest level since March 8 at $ 1,678.40. Gold futures in the United States fell 1.7% to $ 1,685.10 an ounce.

* Benchmark 10-year Treasury yields rose to a 14-month high, underpinned by hopes for higher growth and inflation ahead of the infrastructure plan to be presented by US President Joe Biden.

* The dollar index jumped to a high of more than four months, making gold more expensive for holders of other currencies.

* Higher returns on Treasuries have threatened gold’s appeal as a hedge against inflation, as they increase the opportunity cost of owning bullion, which does not pay interest.

* In other precious metals, silver declined 2.4% to $ 24.07 an ounce; platinum was down 1.7% to $ 1,156; and palladium gained 1.4% to $ 2,564.43 after losing 5.5% the day before.

(Report by Shreyansi Singh and Asha Sistla in Bengaluru, Edited in Spanish by Manuel Farías)

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