Could gold restore safe have status?

The gold price has started to find support and is back to trading near flat on the day at around $1,660.50, at the time of writing, efficiently escaping the earlier $1,641.57 low to the day’s high of $1,664.89.

The US dollar continued to ease and spared its domination over rival currencies despite the surging bond yields amid concerns about rising interest rates that could lead to a global recession. September is approaching its end, with flows could be the cause that is moving out of a heavily committed play by long positioning of late.

Bond yields moved up amid rising interest rates. The US 10-year note’s yield was higher by 0.37% to 3.7510%. The high of the day, however, was at 3.868%. Rising yields weighed on the precious metal.

However, its safe haven attraction is restored as market chaos led to a softer US dollar late nearer the end of the month, falling sharply from a 20-year high. The US Index dropped again on Thursday, making gold more affordable for international buyers. Trading at 112.20, the Dollar Index is down 0.45% on the day, balancing above the lows of 112.104.