Gold Price Slumps as Rising Yields Weigh on Investors

Gold prices have been falling over the past few days after last week's post-FOMC pop fizzled out due to rising interest rate expectations, higher oil prices, and a strengthening US dollar.

The current macro backdrop is not favorable for gold, with elevated oil prices and increasing bond yields making it difficult to change the cautious gold forecast.

Yesterday saw the US dollar continue its upward trend, supported by a slump in the bond markets as yields broke out across the curve. The greenback was also bolstered by some forecast-beating US macro data and hawkish Fed commentary.

The focus is now on the summit between Donald Trump and Xi Jinping, but it remains to be seen how the dollar will react to this event.