The US dollar managed to advance against a basket of major currencies alongside rising equity valuations for a second session, while the yield on 10-Year US Treasury note touched the highest point since May 16th. Investor fears that central banks in the US and Europe are increasingly shifting towards a more hawkish posture has pushed yields higher, which decreases the demand for non-interest bearing gold and other risk aversion assets.
June and July are typically seen as middling months for bullion, with the spot metal rising by an average of 1.00% between 2007 and 2016. On the daily chart, gold is currently exhibiting strong support around $1210 per troy ounce. However, considering the more bearish backdrop and the intermediate term trend downwards, any break below $1210 could see prices continue to decline towards $1180.