Gold Recovers from Earlier Losses and Finishes Higher

Gold prices rose on Thursday, recovering from their losses earlier in the session due to the rise in Treasury bond yields, supported by the recent expectations of the Federal Reserve.

The surge in Treasury yields, which were fueled by expectations of a rise in inflation above 2% this year and a very strong economic recovery in the United States, led to the decline of the stock market, prompting increased demand for safe havens.

Gold futures for April delivery gained $5.40, or 0.3%, to close at $1,732.50 per ounce.

The yellow metal closes lower on Wednesday, but rose in after-hours market trade, following the release of the Fed’s policy statement.