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Gold Prices Ease After Big Gains

Gold prices eased slightly on Tuesday after a surge in the previous session.

Spot gold dipped 0.2 percent to $1,806.12 per ounce after having gained 1.5 percent in the previous session. U.S. gold futures were down 0.2 percent at $1,805.10.

Treasury yields edged up today after the gap between 5- and 30-year yields touched the highest level in more than six years. Higher yields increase the opportunity cost of holding bullion.

The dollar nursed losses near a six-week low, while commodity-linked currencies hovered near multi-year highs as investors await the testimony of the U.S. Federal Reserve Chair Jerome Powell later in the day.

In his semiannual monetary policy testimony before Congress today and tomorrow, Powell is likely to reiterate his suggestion that any inflationary spike to the upside over the near-term will be transitory.

Investors also await further policy guidance and Powell's assessment of the economic recovery.

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