Gold prices went on a rollercoaster ride on Wednesday, sinking below the $1,900/oz mark earlier in the session before overturning those losses later.

By 11:30 a.m. EDT, spot gold rebounded from an intraday low of $1,866.40/oz and advanced 1.4% to $1,938.42/oz. US gold futures were up 0.2% to $1,950.90/oz in New York.

Gold’s headline-setting rally over recent weeks has been engulfed by volatility as investors reassess the merits of one of the hottest pandemic-driven trades of the year.

As one of the best-performing commodities of 2020, bullion has risen by more than 30% this year for its reputable role as an safe-haven asset during times of economic uncertainty.

After setting a record above $2,000/oz last week, the rally has come to a sudden halt as US bond yields rose, eroding the haven’s appeal. On Tuesday, the precious metal dropped by a staggering 5.7% — the biggest one-day loss in seven years.

Benchmark Treasury yields have climbed more than 10 basis points so far this month amid improving risk appetite and an imminent flood of debt issuance.

The recent rebound in yields also reflects investor hopes that the coronavirus outbreak will be contained after Russia’s covid-19 vaccine announcement, according to Standard Chartered Plc.

Despite the recent lapse in gold’s record-breaking run, there is no shortage of supporters who are optimistic of an extended rally in prices…CLICK for complete article