Gold Price Falls 6% in September Amid Rising Bond Yields and Geopolitical Tensions

Gold prices suffered a significant decline in September, dropping by around 6.5% during the month. This marks one of the worst monthly performances for gold since June.

The sharp correction was largely driven by monetary tightening by the US Federal Reserve and rising bond yields in the US market.

As global bond yields increased, investors became less interested in holding non-yielding gold, making it less attractive as an investment option.

Additionally, geopolitical tensions, particularly surrounding Iran and the US-Israeli war, added to the uncertainty and volatility in the market.