Gold Rebounds Above $4,350 as US Yields and Dollar Slip

The price of gold has rebounded above $4,350 due to a decline in US Treasury yields and the US Dollar. This move came as the precious metal had dropped to nearly one-month lows earlier in the day.

According to David Meger, director of metals trading at High Ridge Futures, 'One of the reasons that gold has been able to move back above unchanged is we have seen a little tick down in yields for the day and that has allowed gold to bounce off some of the recent lows.'

The Federal Reserve's Bank of New York President John Williams stated that rising long-term bond yields are not driven by inflation fears but rather a reflection of a solid economy. However, tensions in the Middle East have raised concerns about energy-driven inflation and potential Fed rate hikes.

This might limit the upside for gold, as it is often used as a hedge against inflation but does not yield interest, making it less attractive when interest rates are high.