Gold Slumps as Higher Yields Weigh on Non-Interest Bearing Asset

Gold prices declined in early Asian trade on Monday as higher US Treasury yields weighed heavily. The COMEX gold price was at $4,416 an ounce, down 0.20% or $8.90 from the previous day's close.

The move in gold comes as US Treasury yields remain elevated, with the benchmark two-year yield having risen sharply in recent sessions. Markets are reassessing the path of US monetary policy following the Federal Reserve's latest guidance.

A firm US dollar also added to pressure on bullion, making dollar-denominated commodities such as gold and silver more expensive for buyers holding other currencies. The dollar's strength can limit demand for precious metals.