Gold rises on inflation worries after US stimulus approval2 min read
By Administrator_ India
Gold prices gained on Monday as the passage of a U.S. stimulus bill stoked inflation risks, although a resultant bounce in Treasury yields kept gains in check.
* Spot gold rose 0.3% to $1,732.02 per ounce by 0134 GMT, while U.S. gold futures for April delivery rose 0.7% to $1,730.90 per ounce.
* Yields on benchmark 10-year notes held near their highest in more than a year on continued U.S. economic optimism after a $1.9 trillion recovery package was signed into law last week.
* Gold is generally considered a hedge against inflation, although higher bond yields have challenged that status recently as they increase the opportunity cost of holding non-yielding bullion.