Gold futures fall by more than 2% as U.S. Treasury yields rise

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Gold futures dropped Wednesday as U.S. 10-year Treasury yields jumped above 1% for the first time since March, dulling demand for the precious metal, which offers no yield. Still, “given how markets are focusing on the Georgia senate election results and the possibility of a Democrat sweep, this should provide the precious metal a tailwind in the near term,” said Lukman Otunuga, senior research analyst at FXTM. “Such an outcome may pave the way for larger fiscal stimulus, essentially weakening the dollar further.” February gold fell $45.80, or 2.3%, to settle at $1,908.60 an ounce.
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