Gold falls as US Bond Yields Rise, And Platinum Falling From Highest Level in More Than 6 Years

Gold prices fell by as much as 1.7% on Tuesday, February 16th, to their lowest level in more than a week with the rise in US Treasury bond yields, while platinum fell in volatile trading after a rally that brought it to its highest level in six and a half years.

gold recorded in immediate transactions $1794.50 an ounce in late trading session, down 1.32%, after touching its lowest level since the fourth of February.

US gold futures fell 1.3% to settle at $1799.00 an ounce.

The yellow metal is considered a hedge against inflation expected from a huge economic stimulus that has also pushed the yields of the US 10-year Treasury bonds up, which increases the cost of holding gold that does not yield a return.

Gold has also come under pressure from registering the major stock indices

The US government is at an all-time high amid optimism about a $1.9 trillion fiscal stimulus package in the United States to mitigate the repercussions of the Covid-19 pandemic.

Platinum fell 3.16% to $1261.50 an ounce, after touching its highest level since September 2014.

Analysts attributed the decline in platinum to profit-taking sales after a rally led by speculation of a possible increase in demand.

Silver fell 1.2% to $27.25 an ounce, while palladium fell 0.13% to $2385.10 an ounce.