Fall in dollar halts, gold gains were given up

The slump in dollar price had made gold less expensive for other currencies, the low, however, has been overcome and the dollar is stable as of now. The gains have been struck out after an increase in the bond yields.

In the month of May, losses of the year due to the COVID19 pandemic were amounted to a 7.8% advance to salvage the blot weighing down the economic data and the approaching accelerating inflation which increased the demand for Gold.

“A surge in yields so far today has encouraged some profit-taking and pushed gold briefly back under $1,900. The weak dollar should provide some support,” said Tai Wong, Head of Metals Derivatives at BMO Capital Markets.