On Tuesday, gold went on to continue its falling streak for the second day straight, making the safe-haven metal plunge around 5% this week in the opening sessions. The slump came after the US treasury yields advanced and the greenback getting stronger in the hopes of a new economic package.
Gold has been on a continuous rise as the investors were shifting to the yellow metal as a haven investment in the coronavirus crisis, which led the whole market slump into recession. However, the reverse trend now challenges the defenders of gold, as the metal encountered its largest one-day drop in prices on Tuesday after the market surged and dollar slump rally came to a halt.
Spot gold decreased by 2.1%, taking the price to $1872.61 per ounce, which is the three week low for the metal. Gold futures also saw a slump in Comex with the silver following the way. The white metal went 15% down in the previous session, taking the toll to $24.11 per ounce or 2.8% fall.
Meanwhile, the palladium lost 0.4%, trading at $2082.90 and the platinum plummeted to $920.86 or 1%.
However, the bullion’s total ROI still stands at more than 25% for the current year, and analysts forecast the fall as a correction only and believe that the metal would continue its price rally.
Treasury yields have surged around ten basis points in August.