Gold falls for third straight day as US bond yields rose

Gold prices fell on Thursday, to deepen losses for the third straight day, due to rising US bonds yield, which weighs down on the metal and lifts the cost of opportunity in other assets.

Gold prices fell 1% to $1,787.31 an ounce, after opening at $1,805.23, and hit a day high at $1,805.44.

The yellow metal closed lower by 0.1% yesterday, in its second straight daily loss and due to weak safe-haven demand.

The US 10-year Treasury bond yield rose more than 4.5% on Thursday, extending gains for the second straight day and hit a 1-year high of 1.448%.

The bond yield has jumped more than 35% during this month, after the US inflation expectations rose to the highest level in six years, especially after energy prices rallied, in addition to massive stimulus measures, which indicates that the global economy has entered a more solid phase on the road to recovery from the Covid-19 pandemic after the launch of many vaccination campaigns in most parts of the world.

US Federal Reserve Chairman Jerome Powell stressed during the second part of his semi-annual testimony that employment and inflation rates are still far from the Fed's goals, and interest rates would remain low while and the bonds-buying program will continue.

Gold stocks at the SPDR ETF fell 4.08 metric tonnes yesterday, with the total at the lowest level since May 14, 2020 of 1,132.89 metric tonnes.