Gold Defies Rising Bond Yields Amid Fed Rate Hike Fears

Gold prices have remained steady near $4,295 an ounce despite rising US bond yields hitting two-decade highs. The strong selling pressure is driven by expectations of a Federal Reserve rate hike to combat persistent inflation and geopolitical tensions in the Middle East pushing oil prices higher.

According to Commerzbank, gold's relative strength may reflect market hedging against a potential clash between the Fed and the Trump administration, which has pressured the Fed to cut rates. While higher rates typically weigh on gold, the bank expects limited downside this year, forecasting gold around $4,500 an ounce by year-end.

The forecast is supported by skepticism of the US dollar and concerns over sovereign debt risks. In contrast, many other US stocks have fallen in value, with 44 rising and 106 falling among the 150 tracked. Opendoor Technologies Inc dropped 5.20% to $2.65, Sea Limited declined 4.73% to $103.53, and Carvana Co fell 4.62% to $67.59.