Gold futures rose after successive declines on Tuesday as investors view demand for the yellow metal as concerns over the spread of the delta variant of the coronavirus, which is upsetting financial markets of COVID-19.
August Gold GC00, + 0.72% GCQ21, + 0.72% roe $ 15.60 or 0.9% to $ 1,824.80 per ounce on Comex. July silver SIU21, -0.06%, rose 2.6 cents, or 0.1%, to $ 25.17 an ounce.
Gold fell on Tuesday despite a sharp sell-off in equity markets and a flight to safety that accelerated a decline in US Treasury yields, pushing 10-year TMUBMUSD10Y up 1.141%, its lowest level since mid-February. The 10-year yield continued to decline Tuesday after a round of mixed data on US real estate.
“Gold was stable despite yesterday’s stock market selloff, with price continuing its slow dance above $ 1,800,” said Pierre Veyre, technical analyst at ActivTrades, in a note.
“However, the technical configuration is not comforting for investors as the market recently broke out of its short-term bullish trendline after the last bearish impulse from the $ 1,900 zone fell 50%,” he said.
The near-term outlook for gold remains bearish as long as the price isn’t above $ 1,820 an ounce, Veyret said, with $ 1,794 and $ 1,782 being the next support areas.