Gold Price Bounce Vanishes as Bond Yields Rise Again with Stocks on Covid Vaccine Hopes

GOLD PRICES on Wednesday gave back most of yesterday’s bounce from a $100 plunge, retreating to $1865 per ounce as interest rates on government bonds rose again with both global stock markets and commodity prices following Monday’s headline news of a Covid-19 vaccine.

Although more industrially useful, silver also retreated with gold prices, giving back 40 cents to $24 per ounce, down 6.0% for the week so far.

"At the moment, the gold price is dominated by positive vaccine headlines and higher US yields," says German bullion refiner Heraeus’ global head of trading Hans-Guenter Ritter.

"[But] given the very loose monetary policy of most central banks," adds analyst Daniel Briesemann at Commerzbank, " low or negative real yields [mean] gold should be in demand as a store of value in the long-term."With 10-year US Treasury debt falling in price once again on Wednesday, the yield it offers to new buyers reached 0.98% […]

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