 "Gold")
Gold prices fell on Wednesday as U.S. Treasury yields resumed their advance and global equities also firmed, reducing the appeal of safe-haven bullion.
Spot gold fell 0.6% to $1,727.11 an ounce by 1016 GMT, having dropped to its lowest since June 15 at $1,706.70 on Tuesday. U.S. gold futures were down 0.5% at $1,725.10.
The main driver for gold remains U.S. 10 year Treasury yields, said analyst Xiao Fu at Bank of China International.
"It seems like the broad equity market is stable, with a moderate risk-on sentiment, so that (also) diminishes safe-haven demand for gold," she added.
Benchmark U.S. 10-year Treasury yields edged higher but remained short of a one-year peak reached last week, while global equities also moved higher.
Though gold is seen as an hedge against rising inflation, higher yields have threatened that status because they increase the opportunity cost of holding non-yielding bullion.
"There's a clear trend for gold to the downside, and as long as fiscal stimulus keeps getting pumped into the U.S. economy and the U.S. Federal Reserve remains reticent about doing something to quash yields, gold prices will struggle," said IG Market analyst Kyle Rodda.
Progress on the $1.9 trillion U.S. stimulus bill is being watched closely by investors, with the Senate due to debate the legislation this week.
"We anticipate recent headwinds to intensify again into the second half of this year, particularly as greater U.S. stimulus raises the prospect of an earlier than planned Fed rate hike," UBS analysts wrote in a note.
Fed officials, however, maintain that they will keep monetary easing in place despite a potential bout of inflation this spring.
In other precious metals, silver fell 0.6% to $26.60 an ounce while palladium shed 0.7% to $2,345.97 and platinum dropped 0.4% to $1,199.88.
(Reporting by K. Sathya Narayanan and Sumita Layek in Bengaluru; Editing by David Goodman)
