Gold dives near 9-month low as US bond yields rise

Gold prices fell on Monday, resuming losses after taking a breather on Friday, and fell again near a 9-month low, due to rising US dollar and the US 10-year Treasury bonds yield.

Gold prices fell 0.8% to $1,689.80 an ounce, after opening at $1,703.43, and hit a day high at $1,714.22.

The yellow metal closed higher by 0.8% on Friday, and posted its first daily gain, within recovery attempts from a 9-month low of $1,687.37.

Gold prices lost 1.9% during the past week, in the third straight weekly loss, due to high US T-bond yields.

The dollar index rose more than 0.3% today, to extend its rally for the fourth day in a row and hit a 4-month high of 92.30 points, which weighs down on dollar-denominated metals prices.

The greenback is being lifted by investors' risk aversion amid renewed concerns about the US bond market, after the new jump in US Treasury bonds yields.

The 10-year yields rose by 3% to extend gains for the fourth straight day, and hit a 13-months high at 1.622%. 

The US Senate officially passed the $1.9 trillion Covid-19 relief package on Saturday, within President Joe Biden's efforts to support the US economy amid the worst economic crisis since the 1930s Great Depression.

Gold stocks at the SPDR ETF fell 9.04 metric tonnes on Friday, with the total at the lowest level since May 1, 2020 at 1,069.26 metric tonnes.