The value of gold is declining due to rising yields on US government bonds as an alternative to "safe" investment.
The price of February gold futures on the New York Comex Exchange fell by 0.41% to $ 7.55 and stood at $ 1,776.85 an ounce.
The negative dynamics are related to the increase in the yield of US government bonds. Thus, the ten-year US Treasury interest rate rose to 1.441%.
As The Wall Street Journal writes, despite the dollar depreciation, rising US Treasury revenues may put pressure on the price of gold. As US government bond yields rise, gold becomes a less profitable asset for investors, including those who hold other foreign currencies.
Investor interest in gold declined in 2021. Investors are investing in more profitable assets, cryptocurrencies, and commodity assets.
