2021.03.1009:42:00UTC+00Gold Eases On Strong Dollar

Gold drifted lower on Wednesday after posting its biggest jump in two months in the previous session. The dollar strengthened and yields rose ahead of auctions, eroding the precious metal's appeal.

Spot gold slipped 0.1 percent to $1,714.81 per ounce, after having climbed more than 2 percent on Tuesday. U.S. gold futures were down 0.2 percent at $1,712.75.

Investors look to U.S. inflation data and a critical 10-year bond auction for further direction.

The European Central Bank meets on Thursday, with most economists expecting the central bank to step up its asset purchase pace to counter rise bond yields.

Rising bond yields make holding gold less attractive for investors.

On the stimulus front, market participants await the final vote on U.S. President Biden's $1.9 trillion stimulus plan expected later today.

The stimulus plan provides direct payments of up to $1,400 for most Americans and extends emergency unemployment benefits that help to support consumer spending.