On the gold market, the setback from the record high has picked up speed. On Wednesday, the price of one troy ounce (around 31.1 grams) of the precious metal fell below the $ 1,900 mark on the London Stock Exchange and hit a low of $ 1,863 in the morning. In the morning trade of the 12th August, however, the gold price recovered a little to $ 1,927 at the end of the day.
Price decline explained
Market observers explained the price decline, among other things, with an increased risk appetite of investors, which weighs on gold, which is considered a safe haven. Speculations about a new aid package for the US economy battered by the Corona crisis fueled economic optimism. And the first approval of a corona vaccine in Russia also spread confidence, according to a trader, although many health experts criticized the step as too early and risky. At the same time, yields on US government bonds have also recently increased. In the ten-year term, the return rose from around 0.50 percent in the previous week to 0.67 percent most recently. However, rising yields on US bonds, which are considered safe, make interest-free investments in gold less attractive.