Gold futures closed lower on Wednesday, but held the $1800 mark. Yields on 10-year Treasuries continued to rebound from five-month lows, dampening demand for precious metals.
"Gold is still affected by the strength of the dollar," said Lukman Otunuga, market analysis manager at FXTM. The rebound in Treasury yields weakens the attractiveness of zero-yield precious metals. "
However, he believes that the renewed growth in the number of novel coronavirus infection cases around the world, so that the price of gold is still likely to be supported.
On Wednesday, gold futures for August delivery on the New York Mercantile Exchange fell $8, or 0.4%, to close at $1803.40 an ounce, the lowest closing price in two weeks. The intraday minimum is $1794.30.
Silver futures for September delivery rose 26 cents, or 1%, to close at $25.26 an ounce.