Gold Plunges to $4,325 Amid Rising Oil Prices and Higher Bond Yields

Gold prices fell to around $4,325 per ounce on September 2, marking their lowest level in about two weeks. The decline comes after a sharp sell-off at the start of the month, with spot gold dropping from approximately $4,450 on September 1.

The move is attributed to rising oil prices, which have revived inflation concerns and pushed bond yields and interest-rate expectations higher. This pressure is currently stronger than the safe-haven demand for gold.

Higher bond yields make gold less attractive as investors can earn a higher return from government debt, increasing the opportunity cost of holding non-yielding assets like gold.

A stronger U.S. dollar has also contributed to the decline, making the metal more expensive for buyers using other currencies.