Gold for June delivery on Comex GCM5, +0.86% rose $6.10, or 0.5%, to $1,189.10 an ounce, while July silver SIN5, +1.42% advanced 5.6 cents, or 0.3%, to $16.37 an ounce.
Read: China’s slowdown hurts now, but silver could see a 40% spike by year-end.
European government bond prices continued to retreat, pushing up yields, with U.S. Treasurys following suit. The yield on the 10-year Treasury TMUBMUSD10Y, -1.47% traded above 2.33%, its highest level in months.
Rising bonds yields are typically negative for gold, with commodities that produce no yield suffering by comparison.
But the bond market selloff has spilled over to cause weakness in world stock markets, wrote Jim Wyckoff, analyst at Kitco Metals. Indeed, U.S. equities traded sharply lower.
The dollar was also weaker, with the ICE dollar index DXY, -0.66% a measure of the U.S. currency against a basket of six major rivals, down 0.6%. A weaker dollar can be a positive for gold and other commodities priced in the U.S. unit as it makes them cheaper to users of other currencies.
In other metals trade, July platinum PLN5, +1.14% rose $4.80, or 0.4%, to $1,132.10 an ounce, while June palladium PAM5, +0.65% rose $1.55, or 0.2%, to $782 an ounce.
July copper HGN5, +1.15% rose 3.3 cents, or 1.1%, to $2.936 a pound.