Gold Plummets to Two-Week Low as Treasury Yields and Dollar Surge
Gold prices have taken a hit, plummeting over 2% to a two-week low as investors weigh in on rising Treasury yields and a strengthening U.S. dollar. Spot gold settled at $4,371.50 per ounce, its lowest since August 19. The precious metal dropped below its 200-day moving average, currently around $4,528, on August 28.
Jim Wyckoff, a market analyst at American Gold Exchange, attributed the decline to technical selling pressure and elevated bond yields globally. 'We're seeing some technical selling pressure... bond yields globally are at highs not seen in years,' he said.
The U.S. Treasury yields rose to their highest since January 2025 on Tuesday as rising tensions in the Middle East stoked inflation fears, triggering a global bond selloff. The stronger dollar made greenback-priced gold more expensive for overseas buyers, further pressuring prices.
Gold had hit a three-month high last week before sliding over 3% on Friday after U.S. Federal Reserve Chair Kevin Warsh warned of having more 'work to do' if inflation does not cool down to the central bank's 2% target. Traders now see a 66% chance of a rate hike this month, according to CME's FedWatch Tool.