Gold falls for second day in row as US bonds rebound

Gold prices fell on Thursday, deepening losses for the second straight day, below the $1,800 barrier again.

Gold prices fell 0.6% to $1,782.82 an ounce, after opening at $1,794.29, and hit a high of $1,796.20.

Gold closed lower by 0.55% yesterday, on profit-taking from a 1-week high of $1,808.66, and amid a recovery in the US Treasury bond yields.

The dollar index rose over 0.35% today against a basket of major rivals, which weighs down on dollar-denominated metals prices.

Investors are still buying up the greenback however on bets that the Federal Reserve will cut the bonds purchases program later this year.

The 10-year US Treasury bond yield rose nearly 1.0% today, ahead of the US retail sales data, which may boost the chances of a near monetary policy tightening.

Gold stocks at the SPDR ETF fell 1.75 metric tonnes yesterday, with the total at 998.46 metric tonnes.