Gold Price Plunges on Rising Yields and Inflation Fears

The gold price has hit a 10-day low as rising yields test its support levels. Market analysts believe that oil's recent surge is driving up inflation concerns, which in turn may lead to the Federal Reserve keeping interest rates tight. This is not good news for gold investors.

However, longer-term, there are still structural supports in place for the market. Central banks have been active buyers of gold, with 244 tons purchased in the first quarter - the highest quarterly figure since late 2024. China has also added at least 8 tons in April, its largest move in some time.

The key driver of the current gold price slump is the rising 10-year yield, which has reached 4.78%. This increase in yields is causing stress and putting downward pressure on the gold market.