Gold is at Lowest Level in More Than 7 Months as US Yields Rise

Gold recouped some of its losses after falling to its lowest levels in more than seven months, but it remains on the path of recording its worst weekly performance since the end of November, as the attractiveness of the yellow metal, which does not yield a return, has decreased due to the high yields of US Treasury bonds.

Spot gold fell 0.2% to $ 1771.16 an ounce, after touching its lowest level since July 2 to $1759.29 earlier in the session. Prices have fallen 2.9% since the beginning of this week.

US gold futures fell 0.3% to $1769.20.

But he added that gold will continue to be under pressure due to optimism surrounding the global economic recovery, strong economic data, high returns and a stable dollar.

Gold did not receive support from an unexpected rise in US jobless claims despite the decrease in new cases of Coronavirus last week.

And US benchmark US Treasury yields hovered near a year-high level they reached earlier in the week. Higher returns increase the opportunity cost of holding the non-yielding metal.

As for other precious metals, silver fell 0.5% to $ 26.87 an ounce, and it fell more than 1.8% since the start of the week, the worst since mid-January.

Platinum fell 1.3% to $ 1258.52 but is heading for a third consecutive weekly gain, while palladium fell 0.3% to $2345.07.