By Brijesh Patel
Mar 31 (Reuters) – Gold was headed for its biggest quarterly drop in more than four years on Wednesday, as high U.S. Treasury yields and a stronger dollar diminished the bullion’s appeal as a safe haven. insurance.
* Spot gold was little changed at $ 1,685.03 an ounce at 0916 GMT, after hitting its lowest since March 8 at $ 1,677.61. Gold futures in the United States were stable at $ 1,685.
* For the quarter, the metal is down more than 11% and is on track to mark its worst quarterly performance since late December 2016. Gold is also heading for its third consecutive quarterly decline.
* “The extraordinary strength of the dollar and also US Treasury yields are weighing heavily on gold. In summary, for the moment, it looks like gold is going to be under some pressure,” said independent analyst Ross Norman.
* “Gold seems to be ignoring a lot of good news like massive stimulus spending right now. It’s just working alongside those other two assets (dollar and yields).”
* Some investors see gold as a hedge against higher inflation that could follow stimulus measures, but a recent surge in U.S. Treasury yields has weighed on the non-interest bearing gold metal.
* The US dollar was rising near a five-month high and was on track to post its best month since November 2016.
* Meanwhile, US President Joe Biden is ready to describe how he intends to pay for a $ 3-4 trillion infrastructure plan, after saying that 90% of adult Americans will be eligible for vaccination sooner. April 19.
* Among other precious metals, silver was up 0.4% to $ 24.11 an ounce, but was down nearly 9% for the month. Platinum was up 1.7% at $ 1,173.98 and palladium was up 1.2% at $ 2,621.19, heading for its best month since February 2020.
(Report by Brijesh Patel in Bengaluru; Edited in Spanish by Ricardo Figueroa)