Gold rises thanks to lower bond yields

Gold prices rose on Tuesday, supported by a decline in US bond yields and concerns about a continuing rise in infections with the mutagen delta strain, but the rise of the dollar curbed the gains of the yellow metal.

And gold rose in spot transactions 0.2 percent to $ 1815.61 an ounce by 0653 GMT, after hitting a one-week low of $ 1794.06 in the previous session.

And US gold futures gained 0.5% to $ 1817.90.

“The gold market is taking a breather with very low yields. But gold is vying with the dollar for safe-haven demand, so that will limit upside momentum in the short term,” said Stephen Innes, managing partner at SBI Asset Management.

Record US Treasury yields are stuck near a five-month low.

Lower returns reduce the opportunity cost of owning the yellow metal, which does not generate returns.

The rise in Corona virus infections in the United States and other countries has fueled fears that the pandemic will worsen again, causing shock waves across stock markets, at a time when the mutated Delta strain appears to take root.

Gold is often used as a safe store of value during times of political or economic uncertainty.

But the dollar's safe haven gains limited gold's appeal, as the dollar index consolidated, rising near its highest level in three and a half months against its rivals.

The rise of the dollar increases the cost of gold for holders of other currencies.

As for other precious metals, silver fell 0.3 percent to $ 25.12 an ounce, palladium gained 0.5 percent to $ 2607.38, and platinum settled at $ 1075.52.

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