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Gold is used as a safe investment during times of political and financial uncertainty.
“Some short-covering is providing modest support to gold, but it not displaying any clear momentum in either direction.”
Sentiment in wider financial markets remained weak as investor risk appetite was soured by growing inflationary pressures and a relentless surge in coronavirus cases.
Many countries, particularly in Asia, are struggling to curb the highly contagious Delta variant of the coronavirus and have been forced into taking lockdown measures.
Benchmark 10-year Treasury yields held near more than one-week low, reducing the opportunity cost of holding non-interest bearing gold.