Gold Sinks Below $1800 as U.S. Bond Yields Rise

Global gold prices fell below $1,800 during Wednesday's trading with the rise in U.S. bond yields.

The yellow metal deepened its losses during trading as the yield on 10-year U.S. Treasury bonds rose 1.4% for the first time since February 2020.

The rise in bond yields reduces the attractiveness of gold, which does not yield a return, and it also pushes the U.S. dollar higher, which puts pressure on the metal.

Investors are awaiting the second day of the Fed Chairman Jerome Powell’s semi-annual testimony to Congress on the outlook for the economy and the central bank’s monetary policy.

Powell said in his testimony before the Senate yesterday that the US economy is still far from achieving the Fed's targets on employment and inflation.

By the end of today's trading session, the price of gold futures for April delivery dropped 0.9%, or $ 15.30 to reach $1790.60 an ounce. The spot price of the yellow metal also decreased by 0.7% to $1,792.35 an ounce.

During the same period, the main dollar index, which measures the currency’s performance against 6 major currencies, rose by 0.1% to 90.28.