Gold Prices Tumble as Dollar Strengthens and Yields Rise
Gold prices dropped on Thursday as a stronger U.S. dollar and rising Treasury yields put pressure on bullion. Spot gold fell 0.7% to $4,368.81 an ounce at 10:04 a.m. ET, while gold futures declined 1.1% to $4,411.20 an ounce.
The recent move lower follows weeks of trading near the $4,400 level. Gold's sensitivity to dollar and bond market movements has increased as investors weigh the metal against assets that pay interest, such as U.S. Treasury yields.
A stronger dollar makes gold more expensive for buyers using other currencies, while higher yields can make interest-bearing assets more attractive to investors. The U.S. 10-year Treasury yield moved higher on Thursday after the U.S. government announced plans to buy up to $6 billion of longer-dated debt, disappointing some analysts who had expected a larger repurchase program.