Gold falling in price amid growth of yields on US government bonds

Gold prices are falling slightly on December 7 morning due to an increase in the yield of an alternative ‘safe’ investment - US government bonds, Report informs referring to the auction data.

The price of February gold futures on the New York Comex exchange is down 0.06%, or $1.1, to $1,778.4 per troy ounce.

The decline in the price of the precious metal is facilitated by the yield on ten-year US Treasuries, which rose to 1.451% from the previous close of 1.434%, which makes this alternative for ‘safe’ investments more attractive.

In addition, the price of the precious metal is weakening on fears of the omicron coronavirus strain as investors begin to return to risk sentiment and demand for safe-haven assets declines. According to media reports, the omicron does not yet pose a threat to the economy, since those infected with it showed mild symptoms.