Gold Rising Supported by Lower Yields And Virus Fears

Gold prices surged, boosted by lower US bond yields and worries about higher delta infections, as investors look ahead to this week’s fed meeting.

Spot gold rose 0.3% to $1,806.80 an ounce. And US gold futures rose 0.3% to $ 1806.70.

The rise in Covid-19 infections continued at the weekend, as a number of countries in Asia and Europe struggled to control the outbreak of the most contagious mutated delta strain.

The yields on the benchmark 10-year Treasury bonds have fallen, reducing the opportunity cost of holding the non-yielding yellow metal.

Meanwhile, Asian stocks fell to their lowest levels since the beginning of this year as concerns about tightening regulations led to a decline in Chinese stocks, pushing investors towards safe haven assets such as gold.