Gold Bounces from Seven-Week Low as Yields Trump Geopolitics
Gold prices rebounded on Tuesday after hitting a seven-week low, trading at $4,150.23 per troy ounce for a gain of 0.7%, according to Ad Hoc News.
This modest recovery comes after the spot price fell 3.9% to $4,120.49 in the previous session.
The decline has put the psychologically important $4,000 threshold back on traders' radar screens, with bullion now sitting 26% below its 52-week peak of $5,598.58.
Analysts at DekaBank attribute the escalation in the Middle East to rising energy prices and fresh inflation concerns, which have led to a sharp climb in US Treasury yields.
The yield on the ten-year note reached its highest level since June 2007, with the benchmark pushing past the 5.2% mark, overshadowing gold's traditional safe-haven appeal across commodity markets.