Gold Prices Tumble as Yields Rise and Fed Leaves Rates Unchanged

Gold prices declined on Thursday, influenced by rising US Treasury yields, as investors assessed comments from Federal Reserve Chairman Kevin Warsh on tackling inflation. The central bank maintained its interest rates unchanged this week.

Spot gold decreased by 0.5% to $4,045.59 per ounce, after reaching a high of 2% in the previous session. US gold futures for August delivery gained 0.2% to $4,043.70.

Analyst Soni Kumari from ANZ explained that higher yields are a result of rate expectations and inflation fears, which is pressuring gold prices.

The Federal Reserve's decision has left markets uncertain about its next policy move, with investors still pricing in a 67% chance of a rate hike in September.