Gold below $1300

Quotes of gold fell sharply in trading on Tuesday, losing more than $15, overcame key support for 1300 and reached $1292 per troy ounce by the end of the session.
The yield of US ten-year bonds rose to a maximum over the past seven years, reaching a growth rate of 3.05%. For the first time since 2008, the income from investments in US government securities has become comparable to the yield of the stock market. Retail sales in the US grew by 0.3% in April, as predicted. On an annualized basis, retail sales grew by 4.7%, while expenses outstripped inflation, which was 2.5%. From the speeches of representatives of the Fed in recent days, it was possible to conclude that the regulator can raise the interest rate above 3%, which will lead to even greater growth in yield bonds.
The World Bank published its forecast for 2018, according to which the price of gold could strengthen by 3% due to the increased investment demand for the asset, primarily from the Central Banks of different countries. In the medium term, demand for precious metals will decline due to the improvement of the overall political and economic situation in the world and the growth of interest in alternative investments.
Gold for the first time in a few months managed to overcome the lower limit of the trading range of 1300 dollars. The development of further impulse of decline will depend on the nearest economic releases of the US and further geopolitical conflicts in the Middle East.