Gold rises amid decline in US bond yields

Gold prices rose on Wednesday as US Treasury yields declined, but the gains were reduced after signs of cooling demand for the safe haven.

According to Reuters, gold rose in spot transactions by 0.2% to $1,973.17 per ounce by 0603 GMT, after declining in the previous two sessions from the highest level in 5 months that it recorded last week. US gold futures fell 0.1% to $1,983.30.

Matt Simpson, chief analyst at City Index, said: “Gold’s performance was fantastic, rising more than 10% in 10 days to the main resistance level at $2,000.” But every movement requires a temporary pause, and we have reached this stage.”

The markets are also awaiting the third-quarter GDP data in the United States tomorrow, Thursday, and the US personal consumption expenditures price index on Friday, before the monetary policy decision from the Federal Reserve (the US central bank) next week.

The dollar index fell and standard ten-year US Treasury bond yields fell as investors were led by recent sales.