Gold prices rebounded after hitting a 7 -week high in the previous trading session, driven by rising 10 -year U.S. treasury yields.
The benchmark 10 -year US bond yield showed a rebound and returned to 1.60% in the Asian session today.
The rise caused the yellow gold metal to decline from a peak of $ 1,790, to around the $ 1,770 per ounce price level.
Although US bond yields rebounded, the greenback still traded in decline and traded lower against most major currencies.
Gold prices have shown a sharp rise since late last week following reports that the Chinese government would allow local and foreign banks to import large amounts of the precious metal into the country, while also supported by a weak USD.
In addition, consumer demand for gold from China is also reported to be on the rise after falling to previous lows.
China is one of the world’s major importers of gold, in addition to India and these indicators of increased demand have helped price hikes in the past.
