Gold holds gains as US bond yields drop

Gold rose as the European market opened today to keep its gains for the second straight day, near 6-year high on increased haven demand, after US Treasury yields sharply fell.

As of 09:50 GMT, gold rose by 0.25% to $1,520.22 an ounce from the opening of $1,516.62, with a high of $1,524.24, and a low of $1,507.91.

Gold closed yesterday higher by 1%, its second daily gain in the last three days, after it fell on thursday day on profit-taking from 6-year high of $1,534.97 an ounce.

The gains draw support from weak data in China and Europe, which have renewed concerns about the global economic slowdown and increased haven demand.

Concerns mounted over the US economy recession after the two-year and 10-year bond yield curve inversion for the first time since 2007, which markets interpreted as a sign that the US economy is near a recession.

The drop of the US bond market coincides with increasing global and domestic risks that surround the US economy, which may force the US Federal Reserve to cut rates to counter those risks.

Gold holdings at SPDR Gold Trust, rose by 7.63 metric tonnes yesterday, to a total of 844.29 mt.