Gold edged higher after being hit in the previous session by a surging US dollar, while Treasury yields extended a rally amid persistent concerns about the growing supply of bonds.
Bullion found some support after plunging below $1,900 an ounce on Wednesday, with declines driven by the dollar's rally to the highest since December. Expectations that the Federal Reserve will keep monetary policy tight for longer than its central bank peers have helped buoy the greenback, which typically moves in the opposite direction to the precious metal.
Meanwhile, yields on Treasuries continued to climb amid alarm about growth in the supply of US debt to finance widening government deficits. The rally also reflected the strong consensus that central bank rates were unlikely to decline soon.
Spot gold rose 0.2% to $1,877.84 an ounce at 8:01 a.m. in Singapore, after falling 1.3% on Wednesday. The Bloomberg Dollar Spot Index was flat, and was up about 1% for the week. Silver, palladium and platinum edged higher.
Source : Bloomberg
