Gold Slumps to Two-Week Low Amid Rising Treasury Yields and Stronger Dollar

Gold prices plummeted over 2% to a two-week low on Tuesday as rising Treasury yields and a stronger US dollar weighed heavily on bullion. Spot gold dropped to $4,360.39 per ounce, its lowest since August 19, while US gold futures fell 1.6% to $4,409.30.

The decline was triggered by the break below gold's 200-day moving average, which is currently at around $4,528. According to Jim Wyckoff, a market analyst at American Gold Exchange, 'We're seeing some technical selling pressure... bond yields globally are at highs not seen in years. So that's all working to pressure the gold market.'

The recent surge in US Treasury yields, which rose to their highest since January 2025 on Tuesday, is also putting pressure on gold. Despite its traditional status as a hedge against inflation, rising interest rates and higher yields typically cause gold prices to decline as they raise the opportunity cost of holding non-yielding assets.

The stronger dollar is also making greenback-priced gold more expensive for overseas buyers, further exacerbating the decline in gold prices.