Gold May Snap Six-Day Rally as Stocks, Bond Yields Pare Losses

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.”

Gold May Snap Six-Day Rally as Stocks, Bond Yields Pare Losses

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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