LIVE GOLD UPDATE ::
Gold fell on Wednesday as rebounding stock markets cooled the metal’s appeal and the bearish outlook was bolstered by dollar strength and a bullish U.S. interest rate outlook.
Spot gold XAU= shed 0.2 percent to stand $1,187.26 per ounce by 1038 GMT, moving largely within a narrow $4 range during most of the Asian session.
The metal attracted some interest as world stocks hit eight-week lows in the previous session, but bullion pulled back as shares staged a mild rebound on Wednesday. MKTS/GLOB
“Gold has been pretty resilient to rising bond yields for the past couple of weeks. But, looks like it is starting to come under pressure from rising yields as well as a strong dollar,” ETF Securities analyst Nitesh Shah said.
Rising U.S. government bond yields can weigh on gold, as they make Treasuries attractive to investors seeking assets that earn a return as opposed to non-yielding bullion, which costs money to store and insure.
Gold has fallen over 13 percent since hitting a peak in April, with investors opting for the greenback, as the U.S.-China trade war unfolded and due to rising U.S. interest rates.