Gold prices eased on Thursday as US Treasury yields hovered near a one-year peak. In a period of risk-off, usually, money goes into gold. However, due to rising US yields, safe haven like gold has not moved at all and in fact, it has gone lower.

Gold historically does not react well to rise in nominal and real yields. During the taper tantrum, gold prices fell sharply slipping $200 in just three days.

Reflecting investor sentiment, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell to their lowest since May 2020 on Wednesday, reported Reuters.

"Investor demand for gold has been distracted by moves in other alternative asset classes," ANZ analysts said in a note.

"We expect gold prices will trade sideways for the next quarter or so as the bond selloff continues and investors play the reflation trade through risky asset classes. But gold's time in the sun is not over."

So, is there going to be a repeat of that in 2021 again? CNBC-TV18’s Prashant Nair gets an analysis on which way gold prices are expected to move.

With text input from Reuters

Watch the video for the in-depth analysis

(Edited by : Abhishek Jha)