Gold prices fall below $1,900 amid rise in U.S. bond yields

Gold continued its two-day rout on Tuesday, falling sharply below the $1,900 mark after it plummeted more than 5% earlier in the week.

Spot gold plunged as much as 2.1%, closing at $1,872.61 per ounce after trading at a high of $1,883.29 at 10:11 AM ET (0211 GMT). Meanwhile, gold futures also fell on the Comex.

The safe-haven asset fell from last week’s record gain, trading above $2,000 before soaring U.S. bond yields took the shine out of the yellow metal’s luster.

U.S. yields rose above 10 basis points so far in August, improving market sentiment amid an overflow of debt issuance.

Gold has been in a rough patch in 2020 even after investors flocked to the safe-haven asset as the COVID-19 pandemic continues to batter the global economy. However, DoubleLine Capital LP’s founder Jeffrey Gundlach said that he expects gold prices to rise despite the current setback.