Gold Falls as Rising Bond Yields Outweigh Safe-Haven Appeal

The gold price outlook has turned defensive as rising bond yields push up the cost of holding non-yielding metals, including gold and Bitcoin. According to Fawad Razaqzada, StoneX Media Market Analyst, this trend is driven by the fact that neither gold nor Bitcoin pays a yield, unlike bonds.

Rising oil prices are keeping inflation concerns alive, which in turn pushes up U.S. Treasury yields, weighing on gold and Bitcoin. The dollar is also firming, making it harder for gold to shine as a safe-haven asset during risk-off periods.

The Federal Reserve meeting has introduced new dynamics for the metal market, but until the dollar debasement trade returns, the U.S. dollar remains the dominant driver of prices.