Rising Bond Yields Hit Gold Prices

Gold prices started to decline due to the rising bond yields in the USA.

Rising bond yields hit gold prices. Gold prices fell sharply on Thursday evening, below $ 1,770 an ounce due to the rise in US Treasury bond yields. Gram gold, on the other hand, reached over 420 TL, with the rising trend seen in the USD/TL rate since the beginning of the week exceeding 6 percent despite the decline recorded in global gold prices. The 10-year US Treasury bond yield fell more than 10 basis points on Thursday to 1.60 percent, and hovered at 1.49 percent on the last trading day of the week. US bond yields increased by 15 basis points after starting the week at 1.34. The Bloomberg Dollar Spot Index, which measures the value of the US dollar against the top 10 global currencies, has seen an increase of 0.4 percent since the beginning of the week. While the increase in the US Treasury bill rate puts pressure on the global risk appetite, it also negatively affects the prices of non-interest-based assets such as gold.   Ounce Gold While gold prices have declined by 0.89 percent since the first day of the week, they are preparing to close February with a loss of more than 4 percent. Gold completed the month of January with a decrease of 2.67 percent, experiencing one of the worst year start performances since 2013. Ounce of gold has lost more than 2 percent in the last 2 days with the increase in US Treasury bond interest rates and the US dollar gaining strength, and traded at $ 1,763 at 09:31 am.   Gram Gold Gram gold, which started the week below 400 TL, reached over 420 TL over the 6 percent increase in USD/TL rate since the beginning of the week. With the decrease in global gold prices and USD/TL rate after starting February from 436 TL, gram gold had declined to 396 TL. Gram gold has gained 6.03 percent since the beginning of the week and is being traded around 422 TL.