Gold Slumps to Two-Week Low as Treasury Yields and Dollar Soar
Gold prices dropped by over 2% on Tuesday to reach a two-week low of $4,342.20 per ounce, as rising Treasury yields and a stronger US dollar weighed heavily on the market.
The spot price of gold fell below its 200-day moving average, which is currently around $4,528, triggering technical selling pressure.
US Treasury yields rose to their highest since January 2025 due to inflation fears stoked by rising tensions in the Middle East and a global bond selloff.
This has put pressure on gold prices as higher yields raise the opportunity cost of holding non-yielding assets like gold.
Jim Wyckoff, a market analyst at American Gold Exchange, noted that 'we're seeing some technical selling pressure... bond yields globally are at highs not seen in years.'