Gold May Snap Six-Day Rally as Stocks, Bond Yields Pare Losses
(Bloomberg) -- Gold erased gains as U.S. stocks and bond yields pared losses.
Rates on 10-year Treasuries partially recovered after falling to their lowest since February, easing demand for non-interest-bearing bullion. The S&P 500 clawed back some of its early loss, eroding the appeal of bullion as a store of value. The metal also took a hit amid a broader sell-off in commodities.
“Because of other commodities are selling off, I think gold just slowly gave up its gains,” said Phil Streible, chief market strategist at Blue Line Futures LLC in Chicago. “We saw a quick move into gold, into safety earlier in the session, but as you have a U.S. recovery going on, you’re seeing people sell their safety and go back to risky assets.”
Bullion has rebounded in July after its biggest monthly decline in more than four years amid concerns about a more hawkish Fed pivot. Gold is still down more than 5% this year as investors bet that vaccines will eventually spell an end to pandemic-era stimulus measures.
Spot gold fell 0.3% to $1,798.81 an ounce at 11:39 a.m. in New York after rising as much as 0.8%. Silver, platinum and palladium fell.
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