Gold bounces back above $1,800 to a 3-week high as bond yields continue skid

• The price of gold bounced climbed above the $1,800 level on Tuesday as Treasury yields continued to slide.
• Spot gold rose as much as 1.8% to $1,815.70 per ounce Tuesday morning, its highest level since June 17.
• The precious metal has been under pressure following the Federal Reserve's June meeting.

The price of gold bounced back above the $1,800 level to a three-week high on Tuesday as US bond yields continued an ongoing skid.

Spot gold rose as much as 1.8% to $1,815.70 per ounce on Tuesday morning, the highest level since June 17.

A weaker US dollar is serving as a tailwind for gold prices, according to Commerzbank.

"The fact that gold lastingly overcame the 100-day moving average at $1,790 yesterday paved the way for today's upswing," a group of analysts at the German bank said in a recent client note. "Now that this and the psychologically important $1,800 mark have been exceeded, further gains seem likely."

Gold has been in recovery mode since tumbling sharply after the Federal Reserve's June meeting nearly three weeks ago. New economic projections from the Federal Open Market Committee suggested the central bank will raise its benchmark interest rate two times in 2023. The minutes of the meeting will be released on Wednesday, July 7 at 2 p.m. ET.

"Gold had come under massive pressure following this meeting because the Fed had raised the prospect of an earlier exit from its ultra-expansionary monetary policy," said the Commerzbank analysts. "It remains to be seen whether the minutes will contain any other news of interest, however."

They continued: "After all, Fed representatives in the past three weeks have made numerous remarks about tapering and a first rate hike. Otherwise, this could potentially have a significant impact on the gold price."