July 22, 2021

The Gloom of the Gold Price Movement!

 Gold prices eased lower on Thursday, as demand for the precious metal eased following a rebound in U.S. treasury bond yields.

The yellow metal hovered around $ 1,800 per ounce in the Asian session, with gold futures trading lower at $ 1,798 per ounce.

U.S. 10 -year bond yields rose again to 1.3%, from a five -month low following a weak 20 -year bond auction. Higher bond yields increase the opportunity cost of holding interest -free gold.

While the US dollar depreciated slightly after hitting a three -and -a -half -month high on Wednesday, it remained stronger against its main rivals.

However, investors remain wary of the risks of coronavirus which still plague the market following the number of cases of infection that continue to show an increase worldwide.

Gold opportunities rose also stalled after members of the U.S. Senate blocked a move to open a debate on a $ 1.2 trillion bipartisan infrastructure package that was a priority for President Joe Biden on Wednesday.