Grapevine

Gold ticks up as Treasury yields slip; U.S. retail sales data in focus

An Argor-Heraeus SA stamp sits on a 250 gram gold bar in Budapest, Hungary, on March 10, 2016.

Gold prices inched higher on Wednesday, as U.S. Treasury yields eased, while market participants waited for more U.S. economic data to determine the number of interest rate cuts the Federal Reserve is likely to deliver in the near term.

Spot gold rose 0.3% to $2,667.97 per ounce by 0217 GMT, $17 shy of a record high hit last month. U.S. gold futures gained 0.2% to $2,683.80.

The 10-year Treasury yields slipped for a third straight session, making zero-yield bullion more appealing.

"The game changer in gold prices is the U.S. monetary policy easing as it sets the stage for investment demand," said ANZ commodity strategist Soni Kumari.

"The uncertainly surrounding U.S. elections and geopolitical tensions will also support gold going forward."