Gold Price Plunges Amid Middle East Conflict and Rising Treasury Yields

Gold's price plummeted on Monday, dropping by $90.61 to $4,295 as the 10-year Treasury yield hit 5% and the dollar index rose to 99.42.

The metal suffered its third consecutive weekly decline, falling by 1.8% in the week ended September 11 and by 2.94% over the past four weeks.

However, despite this recent downturn, gold remains higher by 16.49% over the past twelve months, capturing how far the metal has risen and how much of that gain is now being handed back.

The unusual sequence of events on Monday was largely driven by the conflict in the Middle East, which has become a negative catalyst for bullion rather than a reliable upside driver.

As Brent crude pushed above $109, gold fell by 2%, highlighting the inverse relationship between oil and gold prices.