Gold Price Dives as Rising Yields and Dollar Weigh on Bullion
The price of gold fell to its lowest point this week at $4,144.04 an ounce as rising US Treasury yields and a strengthening dollar pushed investors away from the precious metal.
Rising long-dated US Treasury yields reached their highest level since 2002 on Thursday, causing gold prices to drop even as physical buyers in Asia began stepping back into the market.
The metal settled at $4,144.04 an ounce, down 0.8% on the day and erasing earlier intraday gains. Across the full week, bullion shed 3.4%, with its price now 26% below its 52-week high.
Market-implied probability of a Federal Reserve rate hike in October fell to 14% following soft economic data, but fears of a persistently high rate environment ultimately carried more weight than the weak jobs print.