Yesterday, the precious metal fell to its lowest level since August 9. The quote dropped below the $1,800 mark triggered by a wave of euphoria in the US stock market.
On Wednesday, the NASDAQ Composite and the S&P 500 extended their early gains. Demand for safe-haven assets decreased amid increased risk appetite.
Under the circumstances, gold incurred losses and plunged below the psychologically important level of $1,800. As a result, the price fell to its lowest level in two weeks.
Gold closed around $1,791 on the COMEX exchange yesterday. It fell by 1%, or $17,50, following a 0.1% rise on Tuesday.
Likewise, silver lost 0.5%, settling at $23.78 on Wednesday. Meanwhile, the asset gained 1% on Tuesday.
The precious metal market is expected to remain bearish until the US stock indices keep reaching new all-time highs.
"Stocks are too appetizing, too prosperous for investors to sit on gold," Ipek Ozkardeskaya, senior analyst at Swissquote said.
In addition, gold faced pressure yesterday due to a stronger US dollar. On Wednesday, USDX gained 0.1%. Today, however, the greenback is trading down by 0.6%.
An increase in bond yields was another factor behind a decrease in the price of gold. On Wednesday, the indicator came at 1.347%.
The upcoming symposium in Jackson Hole is also among the factors affecting gold. At the start of the week, investors expected a dovish regulator. However, they are now inclined to believe that the Fed's chair may hint at the possibility of early tapering.
On Thursday, gold remains bearish ahead of the upcoming event. At the moment of writing, the asset fell by 0.14%, or $2.25, and was trading around $1,788.5.
OANDA Analyst Edward Moya expects gold to consolidate in the current range after the symposium.
At the same time, the expert stressed that despite widespread tapering talks, an increase in Delta infections may cast doubt on such a possibility. Under such circumstances, interest rates are likely to remain high for a long time, providing support to gold.