Gold dips once more ahead of US growth data

Gold prices declined by over 1% in European trade on Thursday after marking the biggest profit in six months yesterday, with today's decline resulting from a new surge in US treasury yields ahead of US growth data. 

If a recession was confirmed in the second quarter, it'll raise risks and pressures even more on the Federal Reserve as it seeks to tighten monetary policies to contain record inflation.

Prices Today

Gold prices fell 1.1% to $1,641.50 an ounce, after rising 1.9% yesterday, the largest profit since March, away from 29-month lows at $1,614.

US Yields 

US 10-year treasury yields rose 3.5% on Thursday after a tumble yesterday off 14-year highs at 4.019%, in turn pressuring non-yielding gold futures. 

The gains come ahead of major US data later today on unemployment claims and GDP growth. 

If a contraction was confirmed in the second quarter, it'll hurt the bonds market in the short and medium terms, and will bolster gold prices for fresh gains. 

US GDP is expected to have shrunk 0.6% in the second quarter, after falling 1.6% in the first quarter. 

The SPDR

Gold holdings at the SPDR Gold Trust remained flat yesterday at 940.86 tones, the lowest since March 2020.