Gold Prices Plummet Amid Rising Treasury Yields and Fed Rate Hike Expectations
Gold prices are under pressure as the US Treasury yields rise to 5%, sparking concerns about inflation. The Federal Reserve's upcoming monetary policy decision is also casting a shadow over gold prices, with market expectations suggesting a quarter-point rate hike.
The non-yielding metal has been struggling since reaching a one-month low of $4,253 on Monday, with the price currently trading at around $4,310. The rise in US Treasury yields, driven by surging energy prices and speculation about inflation, is weighing heavily on gold prices.
Additionally, the West Texas Intermediate (WTI) crude benchmark has risen above $100, further adding to the downward pressure on gold prices. The strong US Dollar Index, which tracks the performance of the American currency against six major currencies, is also contributing to the decline in gold prices.