Gold Steady, Under Pressure by Rising Bond Yields, Dollar
Gold is trading mostly steady but has come under pressure on account of strengthening in the US dollar and Treasury yields, which is denting the appeal of the safe haven metal among investors. At the time of writing, GOLD is trading at a little above $1,689.
During the previous session, gold was trading bearish as US Treasury yields continued to hold close to a one-year high touched late last week. This also helped boost the US dollar to a multi-month high against its major rivals, and both served to weaken the appeal of the yellow metal, making it less appealing as an investment and more expensive among holders of other currencies.
Meanwhile, expectations for economic recovery in the wake of the coronavirus pandemic also continues to drive up the risk appetite in global markets, exerting further downward pressure on gold prices. On Monday, the precious metal fell to the lowest level seen in nine months.
Losses in gold remain limited as markets eagerly await progress in the next round of fiscal stimulus measures in the US, in addition to expectations for higher inflation. Analysts expect the bearishness in the precious metal to continue until US Treasury yields or the greenback experience a price correction and weaken in the coming sessions.
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