Gold Prices Under Pressure as US Treasury Yields Rise
Gold and silver prices continued to feel the pressure on Tuesday, September 29, as rising US Treasury yields and a stronger dollar kept investors on edge. The COMEX gold price was trading at $4,167.50 an ounce, down marginally by $0.90 or 0.02% from its previous close.
The sharp sell-off in precious metals began the previous session, with spot gold falling as much as 4% to $4,111 an ounce, its lowest level since August 5. The rise in US Treasury yields has increased the opportunity cost of holding gold, which does not generate interest income.
Prithviraj Kothari, Managing Director at RiddiSiddhi Bullions Ltd. and President of the India Bullion and Jewellers Association, attributed the recent pressure on precious metals to interest rates rather than a fading safe-haven demand.