Gold Prices Plummet Below $4,300 Amid US-Iran Tensions

Gold prices have dropped below $4,300 in intraday trading, down nearly 9% from last week's peak near $4,700. The decline comes as a result of rising expectations for Federal Reserve rate hikes, a strengthening U.S. dollar, and rapidly increasing U.S. Treasury yields.

The recent escalation of the U.S.-Iran military conflict has driven up international oil prices sharply, with WTI crude rising 5.09% to close at $90.69 and Brent crude advancing 4.98% to close at $95.20, both reaching their highest closing levels in about five weeks.

The strong U.S. dollar is also putting pressure on gold, as it reduces the metal's value relative to other assets. The 10-year U.S. Treasury yield briefly rose to around 4.81% during Wednesday's Asian session, its highest level since November 2023.