Gold Slumps to Two-Week Low as Treasury Yields and Dollar Rise

Gold prices plummeted to a two-week low on Tuesday as rising Treasury yields and a stronger US dollar weighed heavily on the market.

The metal dropped more than 2% to $4,371.50 per ounce at 11:52 a.m. ET (1552 GMT), touching its lowest since August 19 at $4,362.89 earlier in the session.

Rising interest rates and higher yields on Treasuries typically pressure gold as they raise the opportunity cost of holding the non-yielding asset, said Jim Wyckoff, a market analyst at American Gold Exchange.

Wyckoff noted that '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.'