Gold rises for second day in row

Gold prices rose on Wednesday, extending gains for the second day, but today's gain remain curbed by the US Treasury bond's rise to a 5-month high.

Gold prices rose 0.6% to $1,779.78 an ounce, after opening at $1,769.14, and hit a high of $1,766.82.

Gold closed lower by 0.25% yesterday, in the first daily gain out of 3 days, as the US dollar fell against its peers.

Gold prices are rising thanks to a relatively strong demand, especially in China, the world's largest consumer of the metal.

The 10-year US Treasury yield rose 2.1% today, and hit a 5-month high at 1.673%, which weighs down on demand for gold.

This came due to growing odds that the Federal Reserve will start reducing its bond-buying program during its next meeting, which is an essential step before an interest rate hike.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the lowest level since April 3, 2020 of 980.10 metric tonnes.