Gold extended losses on Wednesday as a runaway rally in global bond yields coupled with a firmer dollar dented the precious metal’s safe-haven appeal.
Spot gold dipped 0.4 percent to $1,788.48 an ounce, while U.S. gold futures were down 0.6 percent at $1,787.55.
U.S. 10-year Treasury yields have topped 1.3 percent for the first time in nearly a year, driven by increasing inflationary concerns on the back of successful vaccine rollouts and prospects of more stimulus.
The three-month implied volatility on 10-year swap rates jumped, signaling that U.S. Treasuries are in for more wild gyrations.
The FOMC meeting minutes will draw attention later today as investors wonder whether or not monetary stimulus will remain super accommodative in the year ahead. Investors fear that ultra-easy monetary policy will spur runaway inflation.