Although US bond yields rose to their highest level since 2007, gold prices held steady rather than falling lower.
This was reflected in the yellow metal trading little changed at $1,895 an ounce during the Asian session, with gold futures hovering at $1,924 an ounce.
The 10-year US treasury bond yield rose to the highest level since 2007 at 4.35% following expectations that the Federal Reserve (Fed) will extend monetary tightening to lower inflation.
In this context, non-yielding gold assets tend to fall if US bond yields rise.
Nevertheless, the price of the yellow metal is seen to remain in the range between the support level of $1,885 and $1,900 in today's trading session.
A speech from Fed Chairman Jerome Powell in Jackson Hole on Friday will be watched by investors for clues on the next direction of policy.
**Gold is a non-productive and non-yielding asset. This means there is an opportunity cost of holding it compared to other assets.
