Gold steady as inflation bets counter firm U.S. dollar

Gold last traded at $1,743 an ounce. Silver at $25.18 an ounce.

NEWS SUMMARY: Precious metal prices rose Tuesday on bargain-hunting and a weaker dollar. U.S. stocks traded mixed as investors took a breather on upbeat economic data.

Reuters--"Gold prices held steady on Monday, buoyed by concerns over inflation after U.S. President Joe Biden announced a $2 trillion-plus jobs plan last week, while a stronger dollar and elevated U.S. Treasury yields limited bullion's upside....

The U.S. economy created the most jobs in seven months in March as more Americans got vaccinated and the government doled out additional pandemic relief money, marking the start of what could be the strongest economic performance this year in nearly four decades.

Shorter-dated U.S. Treasury yields held near 14-month peak, while the dollar its lost gains against major currencies on Monday after the U.S Labor Department reported stronger-than-forecast jobs growth in March.

Gold is seen as a hedge against rising inflation, but firmer Treasury yields, which translate into a higher opportunity cost for holding bullion, have challenged that status.

Despite the strong numbers the data will not alter the Federal Reserve's stance on monetary policy, Steven Ricchiuto, U.S. chief economist at Mizuho Securities USA in New York said."