Gold continues to recover on strong demand, but rising US bonds curb gains

Gold prices rose on Monday, extending gains for the second straight day, rebounding from a 6-week low thanks to strong demand amid fears over the Chinese company Evergrande crisis, but today's gains are being curbed by the rising US Treasury bond yields.

Gold prices rose 0.55% to $1,760.80 an ounce, after opening at $1,751.18, and hit a high of $1,748.22.

Gold closed higher by 0.5% on Friday, the first gain in 3 days, within recovery from the 6-week low of $1,737.64 an ounce.

Gold prices lost 0.25% last week, the third straight weekly loss, after the US Federal Reserve's meeting, which raised the chances of the near tightening of the US monetary policy.

The world's largest real estate company, Evergrande, failed to make an interest payment on a domestic bond last week, with other payments due this week.

This boosted demand for gold in China, as buyers take shelter from the potential fallout from the Evergrande crisis and other factors such as the seasonal recovery of domestic demand.

The US 10-year Treasury bond yield rose today by 1.8%, and hit a 13-week high at 1.48%, due to strong chances of the near tightening of the US monetary policy.

Two members of the US Federal Reserve said on Friday that they feel the US economy is already in good enough shape for the central bank to start reducing monetary support for the economy.

Gold stocks at the SPDR ETF rose 0.87 metric tonnes on Friday, with the total at 993.52 metric tonnes.