* Gold’s downward momentum may prevail in near-term - analyst
* U.S. 10-year Treasury yields fall to lowest since late February
June 21 (Reuters) - Gold prices gained on Monday, after posting a 6% drop last week, as a retreat in U.S. Treasury yields bolstered the non-yielding metal’s appeal.
Spot gold climbed 0.7% to $1,775.96 per ounce by 0330 GMT, while U.S. gold futures edged up 0.3% to $1,774.7 per ounce.
The real yields are falling helping gold prices to stabilize and attempt a rebound, said Margaret Yang, a strategist at DailyFX, adding “investors are also taking this as an opportunity to buy the dip in view of rising inflationary pressure.”
The benchmark U.S. Treasury yields fell to their lowest since late February, reducing the opportunity cost of holding bullion, which pays no return.
Meanwhile, the U.S. dollar held near multi-month peaks against other major currencies on Monday.
Last week, gold posted its worst weekly performance since March 2020 after the U.S. Federal Reserve signalled a sooner-than-expected tightening in its monetary policy.
“In the near term, downward momentum may prevail... Immediate support is at $1,770. If this level is broken, then the next support will be at $1,677,” Yang said.
Investors would now be watching closely at the comments from several Fed officials who will be speaking this week, including Chair Jerome Powell, who testifies before Congress on Tuesday.
“The (gold) market is probably going to base around here for a little bit to digest this week’s commentaries,” said Stephen Innes, managing partner at SPI Asset Management, adding that investors are probably going to focus on inflation and jobs data because that is the Fed’s dual mandate.
The Fed reiterated last week that it wanted to see “substantial further progress” in employment before making any policy shifts.
Silver rose 0.4% to $25.90 per ounce, palladium gained 0.7% at $2,482.67, while platinum fell 0.3% to $1,030.50.
Reporting by Eileen Soreng and Arundhati Sarkar in Bengaluru, Editing by Sherry Jacob-Phillips and Amy Caren Daniel