2021.10.2010:25:00UTC+00Gold Rises On Dollar Weakness

Gold prices rose on Wednesday as the dollar was little changed and not far from its three-week low hit on Tuesday.

Upside in the metal was capped by elevated Treasury yields prompted by hawkish commentary from Federal Reserve Governor Christopher Waller.

Spot gold edged up 0.6 percent to $1,778.88 per ounce after having risen 1.2 percent on Tuesday. U.S. gold futures were up half a percent at $1,779.05.

Benchmark 10-year Treasury yields hit five-month peak after Waller said that policymakers may need to adopt "a more aggressive policy response" next year to dampen down price pressures.

Waller also said in remarks to the Stanford Institute for Economic Policy Research that the Fed should start cutting back its bond purchases (tapering) in November.

Traders are now pricing a full rate hike into the Fed's September policy meeting next year but many of the world's central banks are expected to move at a faster pace. The European Central Bank is seen hiking rates by 10bps in September.