Gold prices bounce back as US yields decline
- 09 Mar 2021
Gulf Today Report
Gold prices gained on Thursday as US Treasury yields retreated increasing the metal’s appeal after hitting a nine-month low in the previous session.
Spot gold rose 0.7% to $1,692.21 per ounce by 07:03 GMT while US gold futures climbed 0.7% to $1,690.30.
Jeffrey Halley, senior market analyst at OANDA said "Dip buyers have emerged after the 1.15% fall overnight and US bond yields have slightly eased, which has provided support for precious metals."
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Lachlan Shaw, head of commodity research at National Australia Bank said, the demand for safe-haven is likely to struggle due to increase in US yields, global vaccine rollouts and growth recovery.
"Central banks will need to try and strike a balance between yields reflating in a reasonable fashion at a reasonable speed, compared to the recovery in economic activity, and so there may be tweaks along the way," Shaw said.
