Gold Sinks as Rate Hike Expectations Boost Treasury Yields

Gold prices fell sharply on Wednesday as the US dollar strengthened and Treasury yields rose to multiyear highs. The move was largely driven by Federal Reserve policymakers reaffirming their support for last week's rate hike and warning of inflation risks.

The benchmark 10-year yield, which has a broad impact on interest rates and currency values, reached its highest level in over two years. This increase in yields made gold less attractive to investors, causing the price to slide.

The SPDR Gold Shares ETF (GLD) was one of the hardest hit assets, losing value as gold futures fell. The decline came despite a slight dip in inflation expectations and concerns about the state of the economy.