Gold breaks above $2,000 mark amid slump in U.S. bond yields, Dollar
Gold prices broke above the $2,000 mark, recovering from last week’s 5% plunge amid a slump in U.S. bond yields and a weakening Dollar.
Gold futures for December delivery on Comex rose by 0.7% ($14.40) to $2,013.10 per ounce after it had peaked to a session high of $2,023.90.
The spot price of gold, which reflects trade in bullion, rose by 1.1.% ($21.64), gaining to $2,007 at 2:40 PM ET (18:40 GMT).
However, before safe-haven investors could cheer the rally, the market closed lower by $35 in the day and dipped to a session low of $1,985. Still, futures and spot prices for the safe-haven asset stood 1% higher on top of Monday’s gains of 2% or more.
Meanwhile, yields on the U.S. 10-Year Treasury fell by 2.8% after it slid by 4% in the previous session.
The U.S. Dollar index, which is based on the value of a basket of currencies, slumped to 92.11. The Fed is due to release its July meeting minutes later in the day, which many believe would revive the Greenback.