Gold Prices Plummet Amid Rising Yields and Hawkish Fed Signals

The price of gold fell to a two-week low after a three-day decline, reaching $4,329.16 per ounce as of 7:26 am in Singapore.

The US dollar strengthened, and long-term borrowing costs rose to levels not seen since 2008, weighing on non-yielding assets like gold.

Rising yields, which touched 5.28% for the 30-year bond, and increased odds of a rate hike at the Fed's September meeting also contributed to gold's decline.

Fed Governor Michael Barr warned that inflation pressures risk becoming entrenched, and Chair Kevin Warsh reiterated his commitment to tackling inflation.