Gold prices fall 1% under pressure from rising US Treasury bond yields

Reuters_ Gold prices fell more than 1% after hitting an all-time high on Wednesday, as a stronger dollar and rising incomes weighed in US Treasury Bonds The precious metal was supported by the demand for safe haven investments related to the presidential elections in the United States on November 5 and war in the Middle East.

Gold in immediate trading fell more than 1% to $2,721.12 an ounce, after hitting a record high of $2,758.37 earlier in the session.

US gold futures rose 0.9% to $2,734.60.

Gold is usually a hedge against uncertainty in economic and geopolitical conditions, and has risen more than 31 percent this year.

The dollar index, which measures the US dollar’s performance against six major currencies, rose 0.3%, nearing a three-month high, making gold less attractive to holders of other currencies, and US bond yields rose to their highest level in three. months.

Ole Hansen, head of commodity strategy at Saxo Bank, said: “The uncertainty is related to the US elections and the increase in debt burdens in the United States. “They have to issue billions of dollars in debt right before the elections in a relatively weak and tight market.”

A new Reuters poll showed that the Vice President of the USA, the candidate of the Democratic Party, Kamla Harris, is slightly ahead of her Republican rival, Donald Trump, 46% compared to 4%.

As for other precious metals, silver in spot transactions fell 3.1 percent to $33.74 an ounce after reaching its highest level since late 2012 at $34.87 in the previous session.

Platinum fell 1% to $1,018.65 an ounce.

Platinum fell 1.9% to $1,055.98.

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