Gold slips for second session on higher dollar, bond yields
Reuters - May 07, 2015
Gold extended losses into a second day on Thursday as a steadier dollar and higher bond yields dented its investment appeal, while uncertainty over the timing of a U.S. rate rise also weighed.
Spot gold was down 0.4 percent to $1,186.96 an ounce by 1414 GMT, holding below the key $1,200 level for a fifth day. U.S. gold futures for June delivery dropped $4.30 to$1,186.00 an ounce.
"Higher real yields rising are the more dominant factor of gold weakness at the moment," ABN Amro analyst Georgette Boele said.
Gold has been trading in a relatively narrow trading range of around $80 an ounce between $1,142 and $1,224 since mid-February, compared to a range of around $150 in January.
Bond yields in Europe and the United States have been rising as deflation fears ease on recovering oil prices and in anticipation of a interest rate increase by the U.S. Federal Reserve later this year.
