2021.05.2409:49:00UTC+00Gold Holds Steady On Weak Dollar

Gold prices steadied near the highest level in more than four months on Monday, as a weak dollar on the back of pullback in U.S. yields and a slide in cryptocurrencies helped.

Spot gold slipped 0.1 percent to $1,878.43 per ounce, while U.S. gold futures were up 0.1 percent at $1,878.75.

The precious metal was supported by a weaker U.S. dollar and expectations of growing inflationary pressure.

The dollar was pinned near three-month lows against a basket of major currencies in tandem with falling treasury yields, thanks to the Fed's commitment to its dovish policy.

U.S. treasury yields fell, with the benchmark yield on 10-year note touching 1.62 percent as investors await reports on U.S. new home sales, consumer confidence, durable goods orders and personal income and spending this week for more direction.

Meanwhile, the White House lowered its infrastructure bill to $1.7 trillion from $2.25 trillion by reducing spending on broadband, roads, bridges and major infrastructure projects.

Still, Senate Republicans did not consider the new proposal as a significant improvement from the original package.