Gold Retreats from Mid-May Highs Amid Bond Yield Rebound

Gold prices have retreated from their mid-May highs and failed to break through the $4,700 mark as US bond yields rebounded amid concerns over the growing national debt.

The Treasury Department's expanded buyback strategy initially led to a downward push in yields, but this effect was short-lived as the market revived the 'debasement trade' and underpinned demand for bullion.

The US Dollar has not mirrored the reversal in bond yields, with traders pricing in around a 75% chance of a Fed rate hike by year-end amid inflation risks from volatile crude oil prices and escalating US-Iran tensions.