London — Gold recovered from a one-week low on Tuesday as the dollar reversed gains and bond yields came off their highs, but short-term risks were to the downside as traders awaited a US Federal Reserve policy meeting and US jobs data. US treasury yields — the benchmark for world lending rates — moved above 2.7% overnight, their highest in three-and-a-half years, helping the dollar off its lows and initially weighing on gold, until the trends were reversed. Still, markets are bracing for potentially hawkish language from the Federal Reserve, which will begin its two-day policy meeting on Tuesday, as all signs are that US economic growth is picking up steam. "On Friday, US jobs data should confirm the strong picture for the US economy, which speaks in favour of rate rises and a strong dollar, so in the short term gold is under pressure," said Mitsubishi analyst Jonathan Butler. He added, however: "The dollar is still very much in a long-term downtrend and even if we see US yields br...
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