Gold’s Wild Ride Continues With Prices Rebounding After Rout (Bloomberg)

After surging about 30% this year, gold’s rally came to a sudden halt Tuesday as U.S. bond yields rose, cutting into the negative real rates that had supported the metal. A measure of gold volatility over the past month jumped to the highest since April. U.S. equities followed European stocks higher on Wednesday, with the S&P 500 edging toward a record, helping limit gains for bullion.

Gold is still one of the best-performing commodities of 2020 after the coronavirus outbreak pummeled the global economy, prompting central banks and governments to deploy massive stimulus. While a host of catalysts including geopolitical tensions and the threat of Covid-19 outbreaks are expected to continue to underpin demand for bullion as a haven, the metal may take time to regain momentum with investors spooked by the rout, according to Commerzbank AG.

https://finance.yahoo.com/news/gold-collapses-below-1-900-023159895.html