Gold stages rebound as U.S. yields, dollar slips

Gold last traded at $1,778 an ounce. Silver at $25.88 an ounce.

NEWS SUMMARY: Precious metal prices rose Wednesday on bargain-hunting and a weaker dollar. U.S. stocks traded mixed as investors mulled over how rising inflation will impact the economic recovery.

CNBC--"Gold prices rebounded more than 1% on Monday after their biggest weekly fall in percentage terms since March 2020, with demand bolstered by a drop in U.S. Treasury yields and a pause in the dollar's rally....

'The reversal in some of the strong gains we saw in bond yields last week has supported the market. Adding to that the dollar is trading a tad softer after the recent strength,' said Ole Hansen, head of commodities strategy at Saxo Bank.

'We'll see some consolidation here and correction to the upside. Gold needs to break at least above $1,800 and the real battle is probably more around the $1,820 level.'....

'Over the next few months, if inflation readings do come higher consistently, and if we continue to see this progress in the labor market, too, then definitely markets will start pricing in a possible rate hike in 2022,' said Metals Focus research consultant Harshal Barot."