Stocks slip on virus fears, US yields continue to climb

Gold rises as rally in US dollar Treasury yields hits brakes

Gold Price Decline Pauses On Political Unrest In Washington, Stimulus Bets

Platinum fell 2.7 per cent to US$1,036.14, while palladium shed 0.6 per cent to US$2,355.16.

The Australian and New Zealand dollars rose from one-week lows, lifting the Aussie above 77 cents again to sit at $0.7680 and the kiwi over 72 cents to trade at $0.7226.

The pan-European STOXX 600 index lost 0.67%.

The US dollar fell on Tuesday and pulled back from its 3-week high while on track for its first loss in 5 days due to profit-taking, but today's loss are curbed by the high yields of the US 10-year Treasury bonds.

The action along the curve meant the spread between the 2-year and 10-year yields steepened to an nearly four-year high of more than 103 basis points.

Further, benchmark Treasury Yields held firm at 10-month highs as investors adjusted for higher government stimulus under the Joe Biden administration, helping the dollar rebound, weighing on gold's gains.

The climb in yields in turn offered some support to the dollar, which rose to its highest in over two weeks against a basket of currencies.

AgenciesThe euro steadied at $1.2208 and dollar index was steady at 89.991 on Wednesday after falling 0.5 per cent on Tuesday.

The Japanese yen weakened 0.20% versus the greenback at 104.16 per dollar, while Sterling was last trading at $1.3522, down 0.30% on the day.

"The renewed concerns about demand due to very high numbers of new corona cases and further mobility restrictions, plus the stronger US dollar, are generating selling pressure", Commerzbank analyst Eugen Weinberg said.

When the dollar goes up, foreign demand for dollar-denominated gold tends to go down.

Gold futures on MCX (Multi Commodity Exchange of India) opened slightly higher at Rs 49,320 per 10 grams after closing with marginal gains at Rs 49,300 on Monday at 11.55 pm, post the announcement on impeachment.

Commercial property prices fell almost 10% in 2020, according to the Green Street Commercial Property Price Index, although the hardest hit sectors saw declines of 15% to 25%. At its session low, the cryptocurrency fell 21% on Monday.

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