Gold Slips As US Treasury Yields Continue To Surge

Published on Jan 08, 2021 12:42

COMEX Gold futures slipped today as metal reacted to a modest recovery in the US dollar and a bounce in US Treasury yields. Gold rose earlier this week on bargain buying and hopes of continued easy monetary policy in the US. The minutes of the Federal Reserve`s latest monetary policy meeting showed there was some discussion about weighting the central bank`s purchases of Treasury securities toward longer maturities. This capped losses in Gold. The yellow metal had tanked Wednesday after US Treasury yields soared as traders felt that a win for Democrats in a Senate runoff race in Georgia may signal more fiscal spending. Yields soared further today with the benchmark US 10 year bond yield spiking near one year high of 1.09%. This pulled Gold lower and the metal currently trades at $1907 per ounce, down 0.30% on the day.