Gold Drops Below $1190 as Bond Yields Jump

Gold remained under pressure on Thursday as higher bond yields dented the investment appeal of the metal, while uncertainty over the timing of a Federal Reserve rate hike also weighed.

Spot gold was little changed at $1,190.31 an ounce by 0050 GMT, after losing 0.1 percent in the previous session and still firmly below the key $1,200 level.

Bond yields in Europe and the U.S. have been rising as deflation fears have eased with recovering oil prices, and in anticipation of a Fed interest rate rise later this year.


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