2021.03.0310:09:00UTC+00Gold Edges Lower Amid US Vaccine Progress

Gold prices were moving lower on Wednesday even as benchmark U.S. government bond yields continued to stabilize after last month's sell-off.

Spot gold dropped 0.7 percent to $1,725.50 per ounce, after having declined to its lowest since June 15 at $1,706.70 on Tuesday. U.S. gold futures were down 0.6 percent at $1,723.95.

The dollar fell against a basket of currencies as easing U.S. Treasury yields fueled demand for riskier assets.

Stocks rose across Asia and Europe after Federal Reserve Governor Lael Brainard said it will take "some time" to meet the conditions for economic progress laid out by the U.S. central bank for reducing the pace of its massive asset purchases.

Recent bond market volatility could cause further delay in tapering, she said Tuesday in response to a question after giving a speech.

An acceleration in the pace of the vaccinations also weighed on gold.

U.S. President Joe Biden said Tuesday that the U.S. expects to take delivery of enough coronavirus vaccines for all adults by the end of May, two months earlier than anticipated, after Merck & Co agreed to produce rival Johnson & Johnson's newly approved shot.

Biden also announced he would be using the powers of the federal government to direct all states to prioritize vaccinating teachers, and said the federal government would provide the doses directly through its pharmacy program.