Gold prices fell today with the US Treasury yields reaching a level close to the peak of a year, which weakens the attractiveness of the metal. However, the dollar’s decline and the US Central Bank’s commitment to an easing policy limit the decline.
Spot gold fell 0.4 percent to $ 1797.73 an ounce, by 05:40 GMT. While US gold futures fell 0.1 percent to 1795.90 dollars an ounce.
“Rising longer-term earnings is a major stress factor on precious metals,” said Margaret Yang, strategy at the Daily Fix, adding that hopes for improved economic activity and prices could push yields higher.
Record US Treasury yields stabilized near the peak of a year, which they reached in the previous session, which increases the opportunity cost of owning the precious metal that does not generate a return.
Focus remains on a $ 1.9 trillion bailout package to mitigate the coronavirus repercussions in the United States, which are expected to pass later this week.