Gold Falls Amid Rising Oil Prices and Inflation Concerns

Gold prices fell by 1.08% to Rs154,262 due to rising oil prices and concerns over inflation. This led to a surge in U.S. Treasury yields, with the 30-year yield reaching its highest level since mid-2007.

The development was also attributed to the prolonged Middle East conflict, which has increased expectations of a prolonged war. Iran has indicated a shift towards a 'fully offensive' military posture after negotiations for a permanent end to the war broke down.

Markets are now pricing in a 33% probability of a September Fed rate hike, down from 47% a month earlier. Speculative positioning remains supportive, with COMEX gold net long positions rising by 9,470 contracts to 141,868 contracts.