Gold backs off 2-month peak on profit-taking

Gold prices fell on Thursday, and pulled back from a 2-month high on profit-taking, and after the US T-bond yields rebounded.

Gold prices fell 0.6% to $1,783.57 an ounce, after opening at $1,793.75, and hit a high of $1,797.83

Gold closed higher by 0.8% yesterday, in the second straight daily gain, thanks to strong safe haven demand.

The 10-year US treasury yields rose 1% today, and rebounded from a 1-week low of 1.531%, which lowers gold attractiveness.

These developments in the US bond market came due to market's bets on rising US inflation, despite of the Federal Reserve successive assurances that the recent prices hike is temporary.

Gold stocks at the SPDR ETF remained unchanged yesterday, with a total at 1,021.70 metric tonnes.