Gold Prices Plummet Amid Rising US Treasury Yields

Gold prices plummeted by around 2% on Tuesday as rising US Treasury yields increased the opportunity cost of holding non-yielding assets. The spot price of gold fell to approximately $4,357 per ounce at 1240GMT, marking its lowest level since August 19.

The decline in precious metals was also reflected in silver, which dropped by 2.8% to $64.65 per ounce. Platinum and palladium also traded lower on the day.

The increase in US Treasury yields has made yield-bearing assets relatively more attractive, weighing heavily on gold and silver prices. The rising bond yields are also a result of growing concerns over inflation, fueled by rising energy prices and tensions in the Middle East.