Gold Slips on Rising Yields Amid Fed Rate Stance

Gold prices declined on Thursday as U.S. Treasury yields rose, making non-yielding bullion less attractive.

Spot gold dropped 0.4% to $4,048.39 per ounce after climbing up to 2% in the previous session. U.S. gold futures for August delivery were up 0.3% at $4,045.70.

The increase in Treasury yields is seen as a sign of growing concern over inflation and higher interest rates, which reduces gold's appeal since it generates no yield. Analyst Soni Kumari said that yields tend to move with rate expectations, weighing on gold.