Gold prices are declining amid the increase in the yield of US government bonds as an alternative object of ‘safe’ investments, Report informs, referring to the auction data.
The price of February gold futures on the New York Comex exchange is down 0.41%, or $7.55, to $1,776.85 per troy ounce.
The negative dynamics is associated with an increase in the yield on US government bonds. Thus, the yield on ten-year US Treasuries rose to 1.441% from the previous closing level of 1.421%.
The Wall Street Journal writes that despite the dollar depreciation, rising US Treasury yields may put pressure on gold prices. As the yield on US government bonds rises, gold becomes a less profitable asset for investors, including those who own other foreign currencies.