Gold Falls Below $4,200 Amid Rising Treasury Yields

Gold prices have declined to $4,196 per ounce as rising US Treasury yields and a stronger dollar put pressure on bullion. This comes after the Federal Reserve raised interest rates in September, with persistent inflation strengthening expectations for continued restrictive monetary policy. Central bank purchases continue to support gold, but are not enough to offset tighter financial conditions.

The 10-year Treasury yield has climbed above 5.1% and rose to around 5.21%, while the latest official 10-year real yield stood at 2.83%. Both have risen sharply in September as markets adjusted to firmer inflation data and a more restrictive Federal Reserve outlook. Gold has retreated alongside the rise in yields, trading below levels seen during August and below the $4,506 average recorded during the second quarter.

The dollar's strength is also adding pressure on gold, with the Dollar Index above 101. Higher Treasury yields have strengthened the relative appeal of US government debt at a time when gold generates no interest income. The move has also supported the dollar, making it harder for gold to regain momentum even as uncertainty across energy and global markets continues to support demand for defensive assets.