Gold prices fell on Wednesday, heading towards incurring losses for the second consecutive session, as the dollar’s gains and the recovery of US Treasury bond yields overshadowed the metal’s attractiveness as a safe haven amid concerns about the rapidly spreading delta from the Corona virus.
The spot price of gold fell 0.2 percent to $1,805.81 an ounce by 0855 GMT. US gold futures fell 0.3 percent to $1,805.50.
“Treasury yields are looking a little stronger, and (European) stock markets are a bit better bet, which is taking away the luster of gold,” said Michael Hewson, chief market analyst at CMC Markets UK. The US dollar approached its highest levels for the year and bonds continued their rally yesterday, as rapid delta spread, not inflation, became the main concern for investors.
Record US Treasury yields rebounded after hitting their lowest level in more than five months during the previous session.
European shares rose ahead of the European Central Bank meeting on Thursday, which is expected to produce a monetary easing tone.
In other precious metals, silver rose 1.1 percent to $25.17 an ounce, palladium advanced 1.2 percent to $2665.58, and platinum rose 0.7 percent to $1073.21 an ounce.