Gold Prices Plummet as Rising Yields and Stronger Dollar Weigh on Safe-Haven Demand

Gold prices have been in a short-term downward trend since their late January record peak. The trend extends up to today, according to CPM Trade Signal's analysis. Spot gold and silver prices fell sharply on Thursday as rising Treasury yields, a firmer U.S. dollar, and a renewed crude-oil spike outweighed safe-haven demand tied to the U.S.-Iran conflict.

At the time of writing, spot gold was trading near $4,047.80 an ounce, down 1.98%, while spot silver was trading near $57.64, down 3.46% on the session. A 13% correction in gold prices during the second quarter has not been enough to derail the trajectory of the world's largest gold miner, Newmont, which delivered strong earnings and reaffirmed its full-year production guidance.

Despite this, retail investors remain confident in gold, with healthy profit-taking replacing panic, according to EverBank's Gaffney. Paul Wong, managing partner and market strategist at Sprott Inc., believes that gold is massively oversold by every meaningful metric and is likely to set a cyclical bottom before September.