Gold notches back-to-back gain amid pullback in dollar, bond yields
Gold futures settled slightly higher on Thursday amid softness in the U.S. dollar and a slight pullback in bond yields. April gold closed up 60 cents, or less than 0.1%, at $1,332.70 an ounce. The move comes a day after Federal Reserve meeting minutes hinted at a quickened pace of raising borrowing costs, putting pressure on dollar-pegged commodities. However, greenback, as gauged by the ICE U.S. Dollar Index was trading lower Thursday afternoon and the yield for the benchmark 10-year Treasury note retreated from a intrasession high on Wednesday at 2.95%, giving gold some room to inch higher. A stronger dollar can weigh on dollar-denominated commodities because it makes them more expensive to buy for holders of other currencies. Rising rates, meanwhile, can undercut appetite for gold, which doesn't offer a yield. However, the yellow metal's moves on were tepid amid a rally in the Dow Jones Industrial Average and the S&P 500 index , which was drawing some appetite away from assets considered havens like gold.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.