Gold steadies after worst month in four years as yields in focus

Gold steadied after its biggest monthly slump since late 2016 as dovish comments from the world’s major central bankers helped curb rising bond yields.
Last week’s sell-off in sovereign debt stabilized after central banks from Asia to Europe provided reassurance that policy support remains in place. Bets on accelerating inflation are raising concerns that there could be a pullback in monetary policy support despite assurances from the Federal Reserve that higher yields reflect economic optimism for a solid recovery. European Central Bank data published yesterday will show whether it has taken action to counter rising rates.
Bullion has had a rocky start to 2021 as the rollout of vaccines worldwide spurred optimism about a recovery from the pandemic, curbing demand for safe havens and boosting bond yields. Exchange-traded funds backed by the metal recorded a tenth consecutive day of outflows on Friday, according to an initial tally by Bloomberg, a sign investment demand is waning.
Spot gold was little changed at $1,734.43 an ounce by 1:36 p.m. in London, after slumping 2.1% to the lowest close since mid-June on Friday. That brought the loss in February to 6.2%, the most since November 2016. Silver, platinum and palladium all climbed. The Bloomberg Dollar Spot Index was little changed. MDT/Bloomberg

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