Gold steadies after hitting three-week high

Gold prices steadied on Thursday, after hitting a more than three-week high earlier, as an uptick in U.S. bond yields undermined the support from expectations of rate cuts by the Federal Reserve early next year.

Spot gold lost 0.2% to $2,072.79 per ounce by 9:35 a.m. ET (1435 GMT), after earlier rising as high as $2,088.29, the most since Dec. 4, when bullion hit its all-time peak.

U.S. gold futures were down 0.5% to $2,082.60.

“There’s not a lot of trading volume right now in any of the markets so that usually causes smaller moves, especially when we’re approaching a big number like an all-time high,” said Chris Gaffney, president of world markets at EverBank.

The dollar index hovered near a five-month low and was heading for a yearly decline. Benchmark 10-year bond yields picked up, but were also close to their lowest levels since July.

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