Gold Rebounds Amid Decline in Bond Yields and Dollar

Spot gold prices rebounded to $4,356.29 on August 19, after falling nearly 2% the previous day due to decade-high bond yields in the US, Germany, and Japan.

The higher yields made gold less appealing as an investment option, but its rebound was triggered by a decline in bond yields and the dollar, which lowered the local-currency cost of dollar-priced bullion for non-US buyers.

Lukman Otunuga, Head of Market Research at FXTM, said that if spot gold closes above $4,390, it could open a path toward $4,505, while a close below $4,300 could expose the metal to a decline towards $4,200 and then $4,150.

The July Federal Open Market Committee (FOMC) minutes are expected on August 19, which could influence Fed rate expectations and impact gold prices.