Gold Holds Ground Above Key Support Despite Dollar Surge

Gold futures declined today by $12.60 or 0.29% to close at $4,310.10, but remained above the critical support level of $4,298.

The decline follows yesterday's drop of $73 and comes as yields on 10-year bonds spiked to 20-year highs, sending the dollar higher along with it.

US 10-year Treasury yields reached a high of 5.22% before settling at 5.20%, matching levels seen in 2007 preceding the financial crash of 2008.

The rise in oil prices due to concerns over supply disruptions has led to higher inflation expectations, increasing the chances of another rate hike at the October FOMC meeting to 65% according to the CME's FedWatch tool.