PRECIOUS-Gold eases off seven-week high as U.S. bond yields rise

BY Reuters | TREASURY | 04/19/21 09:09 PM EDT
       April 20 (Reuters) - Gold prices edged lower on Tuesday,
moving away from a seven-week high hit in the last session, as a
rebound in U.S. Treasury yields overshadowed support from a
sagging dollar.

    FUNDAMENTALS
    * 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.
    * U.S. gold futures        were steady at $1,770.70 per
ounce.
    * Benchmark U.S. 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.
    * U.S. 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.

    * Among other precious metals, silver        eased 0.1% to
$25.78 per ounce. Palladium        fell 0.3% to $2,804.09.
Platinum        slipped 0.2% to $1,203.57.

    DATA/EVENTS (GMT)
0600  UK   ILO Unemployment Rate     Feb

 (Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu
Sahu)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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