Gold prices remained flat on Wednesday, with the 10-year U.S. Treasury yield hovering at a nearly four-year high under pressure to hold the gold price. However, the resumption of the dollar's downward trend will bring support to the gold market as the US Federal Reserve Board (FED / Fed) declares.

At 1835 GMT, spot gold settled 0.1% higher at $ 1,339.69 an ounce, while the United States in February gold settled up $ 3.60, or 0.3%, at $ 1,339.

The Federal Reserve announced on Wednesday the interest rate unchanged, but said it expects inflation to rise this year, indicating that it is still on track to raise interest rates again in March.

Bond yields rose to make investment attractiveness of gold fell, because there is no interest in gold.

Earlier this week, the benchmark 10-year U.S. Treasury broke the 2.74% key technology threshold, said Trey Reik, senior portfolio manager at prott Asset Management USA.

"Whenever there is such an important technical breakthrough, the Fed may attribute it to traditional factors, namely, the economy accelerating growth expectation and the potential impact of inflation," Reik said.

The dollar is expected to record the largest monthly decline in nearly two years, with the dollar declining making dollar-denominated commodities cheaper for other currency buyers.

Supported by the weaker dollar, the gold price is expected to record the third straight monthly increase, up 3% so far in January, the largest monthly increase since August 2017.

Silver, the other precious metals, climbed 0.7% to $ 17.25 an ounce, hitting a week low of $ 17.03.

Palladium dropped 2.7% to $ 1,026.10 an ounce, hitting a five-week low. Palladium prices soared 55% in 2017.

Although the price of palladium rose to the highest level in 1990 since early January, spot palladium is still expected to record a monthly decline of over 3.3%, the worst monthly performance since December 2016.

Platinum rose 0.02% to $ 996.20 an ounce, up about 8% this month, is expected to record the best monthly performance since January 2017. Platinum hit a one-week low yesterday.

<>Gold prices flat under pressure in the United States bond yields rise
<>Gold prices flat under pressure in the United States bond yields rise

 

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