Gold Slides as Elevated Yields Weigh Amid Softer Oil Prices

Gold prices retreated on Wednesday after rising 1.6% in the previous session, as softer oil prices alleviated some inflation concerns while elevated Treasury yields continued to weigh on bullion.

The US Dollar Index was little changed at 101.38, but oil prices extended their decline as signs emerged that Middle East supply was recovering toward levels seen before the war. Saudi Arabia increased flows through a key pipeline after repairs, helping offset concerns linked to the continuing deadlock over the Strait of Hormuz that had driven fuel prices higher earlier in the week.

Even with this pullback, oil remains about 70% higher this year as the conflict approaches its eighth month. Lower oil prices have eased some pressure on the inflation outlook, but uncertainty around energy supplies remains an important factor for markets assessing the Federal Reserve's next moves.