Early on Thursday, gold prices are on the rise after trading close to nine-month lows even though they are under pressure owing to a stronger dollar and a rise in US Treasury yields, which are denting the safe haven metal’s appeal among investors. At the time of writing, GOLD is trading at a little above $1,717.

During the previous session, gold prices declined to around $1,701 – the lowest level seen since early June 2020. The weakness was driven by the benchmark 10-year US Treasury yields strengthening to around 1.5%, which increased the opportunity cost of holding non-yielding bullion among investors.

The safe haven appeal of the precious metal was further dented by comments from Chicago Fed President Charles Evans indicating that the rise in bond yields was a reflection of improvement in economic outlook. A rebound in the US economy and the overall global economy from the pandemic-inflicted damage can turn investors away from the safety of gold and towards trading riskier instruments instead.

Later today, the yellow metal can experience some movement following Fed chair Jerome Powell’s speech. Traders will look for his observations on the state of the economy, which could potentially shed light on the central bank’s monetary policy outlook ahead of its next meeting on March 17.