LONDON: Gold prices hovered near five-week lows on Thursday as higher US bond yields and a stronger dollar dampened interest in bullion.

Worries about the growing supply of US government debt and inflationary pressures from rising oil prices this week pushed US 10-year bond yields above 3 per cent for the first time in four years.

Spot gold was down 0.2pc at $1,320.21 an ounce by 1509 GMT. On Wednesday, gold touched its lowest since March 21 at $1,318.51. US gold futures were 0.1pc lower at $1,321.70.

In other precious metals, platinum was up 0.3pc at $906.30 and palladium slipped 0.3pc to $973.97. Analysts and traders polled by Reuters expected average prices of both metals to be higher this year and next.

Published in Dawn, April 27th, 2018