US Treasury yields have climbed to their highest level in nearly 20 years, and gold prices may come under pressure in the short term. On August 18, spot gold fell 1.85 percent in a single day to settle at 4,334.65 dollars per ounce, while December gold futures in New York closed down 1.2 percent at 4,420.6 dollars. The yield on the 30-year US Treasury bond at one point rose to its highest since mid-2007, as energy inflation concerns stemming from geopolitical conflict in the Middle East further reinforced the upward logic for Treasury yields and raised the opportunity cost of holding non-interest-bearing assets. CICC Wealth Futures believes it will be difficult for bond market yields to sustain a sharp rebound, and gold is more likely to remain in high-level consolidation in the short term. Funeng Futures expects gold prices may see some back-and-forth in the near term, but the medium- to long-term outlook remains bullish. The Bosera Gold ETF, ticker 159937, was down 0.99 percent as of 10:58 on August 19, with the latest quote at 8.97 yuan, and a total net inflow of 408 million yuan over the past 20 trading days.
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