(Updates prices)
* Dollar hits fresh four-month high
* Yellen, Powell express confidence in U.S. recovery
* Silver slips to over two-week low
By Asha Sistla
March 25 (Reuters) - Gold prices edged higher on Thursday as
surging COVID-19 cases across Europe fuelled concerns about the
pace of economic recovery, although a stronger U.S. dollar
curbed the metal's gains.
Spot gold was up 0.1% at $1,736.51 per ounce by 0533
GMT. U.S. gold futures were up 0.2% at $1,736.50 per
ounce.
"At these levels, gold might be catching a bit of safe-haven
buying now, which is a change from what we were looking at just
a few days ago," said Michael McCarthy, chief market strategist
at CMC Markets.
"One of the issues for gold is there seems to be two camps
-for those worried about new lockdowns in Europe and ...those
who have a very positive view of the economic outlook," McCarthy
said, adding both these opposing scenarios are mildly supportive
of gold.
Gold is also considered a hedge against inflation, which is
likely spurred by widespread stimulus to boost economic growth.
U.S. Federal Reserve members indicated on Wednesday that the
central bank will start to raise rates depending on economic
outcomes and that it will not reduce monetary policy
accommodation until it sees actual improvements.
Limiting gold's gains, the dollar index jumped to fresh
four-month highs on concerns about extended economic lockdowns
in Europe and potential U.S. tax hikes.
U.S. Treasury yields dipped, with the market appearing to
stabilise after benchmark yields reached one-year highs last
week.
"Stabilising bond yields, sanguine comments from the U.S.
Fed are keeping gold in a range without much direction," said
Michael Langford, director at corporate advisory AirGuide.
In other metals, palladium was down 0.1% to $2,631.91
and platinum was up 0.2% at $1,170.
Silver was up 0.2% at $25.12, having fallen to a more
than two-week low of $24.93 earlier in the session.
(Reporting by Asha Sistla in Bengaluru; Editing by Devika
Syamnath and Subhranshu Sahu)
.Source
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