The U.S. Energy Information Administration (EIA) revealed on Wednesday that crude inventories decreased by 0.994 million barrels in the week ended January 29. Economists had forecast a build of 0.446 million barrels.

At the same time, gasoline stocks surged by 4.466 million barrels, while analysts had expected an increase of 1.134 million barrels. Distillate stocks edged down 0.009 million barrels, while analysts had forecast a draw of 0.429 million barrels.

Meanwhile, oil production in the U.S. remained unchanged at 10.900 million barrels a day.

U.S. crude oil imports averaged 6.5 million barrels per day last week, increased by 1.4 million barrels per day from the previous week.

FXStreet notes that the rising US 10y yield and the outperformance of risky assets have weighed on the safe haven appeal of gold. Recent strength in the USD has created headwinds for the precious metals market. However, rising inflation expectations should provide some support in the medium-term, strategists at ANZ Bank appraise.

“The rising US 10y yield and the risk-on tone of the market have been subduing investor interest in gold for the past few months. Talks around tapering of asset purchases by the central banks have also dented market sentiment.”

“We believe gold remains a relevant risk-diversifier amid rising inflation expectations and expensive equity market valuation. The rise in real interest rates looks constrained this year, as the Fed has signalled that its accommodative stance will continue. This should keep the backdrop benign for gold prices.”