Gold Price Down, With Investors Weighing Movements in Bond Yields and Greenback

London (Aug 13)  Gold was down on Thursday morning in Asia, with investors digesting increasing bond yields and a weaker dollar alongside hopes for a new COVID-19 vaccine.

Gold futures edged down to $1,947.50 by 11:19 PM ET (4:19 AM GMT), remaining supported above the $1,900 mark.

Bond yields edged higher, but the dollar saw losses on Thursday. The movements were partly attributable to a fifth day of the U.S. Congress standstill over the latest stimulus measures, with Republican and Democrat negotiators trading blame on Wednesday for the stalemate. Meanwhile, Republicans continued their refusal to budge on an initial $1 trillion offer.

Some investors predicted that the current price swings for gold would continue but remained optimistic about new record highs.

“Gold’s roller-coaster ride is far from over as bond yields will likely remain volatile for the rest of the summer,” Edward Moya, senior market analyst at Oanda, told Bloomberg.

“The relentless pace higher for gold will moderate but the outlook still warrants a strong stretch of fresh, record highs.”

There was further news over a potential COVID-19 vaccine on Wednesday, with Russia announcing that the first batch of its COVID-19 vaccine Sputnik-V would be ready for some medics within two weeks.

Investing.com