Gold Prices Tumble as Higher Yields Weigh on Bullion

Gold prices fell in early Asian trade on Monday, September 21, as higher US Treasury yields weighed down the non-interest-bearing asset. COMEX gold was trading at $4,416 an ounce, down $8.90, or 0.20%, in the morning session.

The price movement came as markets reassessed the path of US monetary policy following the Federal Reserve's latest guidance. Higher yields can make gold less attractive as it does not generate interest income.

A firm US dollar also added to the pressure on bullion, making dollar-denominated commodities like gold and silver more expensive for buyers holding other currencies.