Commodities
Gold Prices Sink Amid Surge in Oil and Rising Yields
Gold prices have been under pressure in late-afternoon U.S. trading on Tuesday, falling to $4,327.70 an ounce as investors react to a surge in crude oil prices and rising bond yields.
The increase in oil prices has pushed Treasury yields higher, reinforcing expectations of a potential Federal Reserve rate hike this month.
According to the latest positioning data, there is still a 66% probability of a September rate hike, with the two-year Treasury yield rising to 4.39% and the 10-year yield climbing to 4.79%.
The Strait of Hormuz remains a key geopolitical factor in oil prices, but Tuesday's market impact came from inflation and rates rather than a safe-haven bid for gold.