Gold prices are sliding lower in early trading on Wednesday amid the increased focus on stronger US Treasury yields which are denting the appeal of holding non-yielding bullion among investors; however, losses remain limited over a weakness in the dollar. At the time of writing, GOLD is trading at a little above $1,733.

During the previous session, gold fell to the lowest level seen in over eight months even though the benchmark 10-year US Treasury yields have been declining for the fourth consecutive day. Despite the weakening in bond yields, they still remain close to 1.4% – around a one-year high.

Gold has come under additional pressure as a weakness in the bond yields have boosted the market sentiment, denting its safe haven appeal and sending investors towards riskier instruments instead. Markets are likely to focus on economic data for signs of further economic recovery, which could exert more pressure on the yellow metal prices.

However, gold could receive some support from the rollout of more fiscal stimulus initiatives in the US. President Joe Biden’s proposed coronavirus relief package worth $1.9 trillion is making progress, coming up for debate in the Senate.