Gold Prices Plummet as US Treasury Yields Reach New High

Gold prices plummeted by around 2% on Tuesday as elevated US Treasury yields made holding non-yielding assets less attractive. The selloff in precious metals saw spot gold drop to $4,357 per ounce at 1240GMT, its lowest level since August 19.

Silver suffered an even steeper decline, falling 2.8% to $64.65 per ounce. Platinum and palladium also traded lower amid the market downturn.

The increase in US Treasury yields to their highest levels since January 2025 has put pressure on gold and silver prices. Higher bond yields tend to weigh on these metals because they do not provide interest income, making yield-bearing assets relatively more attractive.