InstaForex

July 9, 2021

Didn't Last Long, Gold Decreased Again

 The yellow gold metal rebounded on Friday, after surging to a three -week high in the previous session, driven by a sharp decline in U.S. treasury yields.


Earlier, gold surged to $ 1,818 an ounce following a fall in 10 -year US bond yields to 1.25%.


The decline in bond yields, was also followed by the fall of the US dollar and benefited gold trading to rise higher.



Also gaining support for the strengthening of gold prices, was when the unexpected volume of US jobless claims showed an increase exceeding market expectations last week.


This has led to market confidence in stronger global growth, again fading, coupled with an increase in cases of Covid-19 infection which is becoming increasingly alarming in some countries particularly Asia and Europe.


However, the rise failed to be sustained causing the precious metal to re -trade around $ 1,800 per ounce as yields rose again to 1.32% in today's trading session.